Canada’s main stock index slid lower on Tuesday with mining shares leading a mass drop across the market, from which only the energy and tech sectors were spared. Investors are also anticipating interest rate cuts from both the Bank of Canada and the US Federal Reserve this week. The Bank of Canada is widely expected to lower rates by 0.25 per cent, responding to signs of a weakening job market and slowing economic growth. According to Statistics Canada, the Consumer Price Index rose 1.9 per cent year-over-year in August, up from 1.7 per cent in July. On a seasonally adjusted monthly basis, CPI increased by 0.2 per cent in August.
The S&P 500 closed above 6,600 for the first time on Monday, while the NASDAQ Composite stepped back from its recent record high. Investors reacted positively to President Donald Trump’s upbeat comments about trade negotiations with China. Major tech stocks tried to lift the market, but let some early gains slip away, such as Alphabet (NASDAQ:GOOG) losing 0.14 per cent, but Tesla (NASDAQ:TSLA) posted gains of 2.82 per cent. Traders are now focused on the Federal Reserve’s interest rate meeting, which began on Tuesday, with a decision expected on Wednesday. Futures markets are fully pricing in at least a quarter-point rate cut.
| TSX | 29,315.23 | -115.79 |  |
| TSXV | 876.27 | -16.71 | |
| CSE | 155.60 | +3.65 |  |
| DJIA | 45,757.90 | -125.55 | |
| NASDAQ | 22,333.96 | -14.79 | |
| S&P 500 | 6,606.76 | -8.52 | |
The Canadian dollar traded for 72.72 cents US compared to 72.59 cents US on Monday.
US crude futures traded US$1.26 higher at US$64.11 a barrel, and the Brent contract rose UA$1.05 to US$68.00 a barrel.
The price of gold was up US$12.15 to US$3,692.08.
In world markets, the Nikkei was up 134.15 points to ¥44,902.27, the Hang Seng was down 8.05 points to HK$26,438.51, the FTSE was down 81.37 points to ₤9,195.66, and the DAX was down 419.62 points to €23,329.24.
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