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TSX dips as lower oil prices pressure energy shares

Published 11/16/2022, 07:42 AM
Updated 11/16/2022, 04:56 PM
© Reuters. FILE PHOTO: The Art Deco facade of the original Toronto Stock Exchange building is seen on Bay Street in Toronto, Ontario, Canada January 23, 2019.   REUTERS/Chris Helgren/File Photo
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By Fergal Smith

TORONTO (Reuters) - Canada's main stock index fell on Wednesday as lower oil prices weighed on energy shares but gains for consumer-related stocks helped limit the index's decline.

The Toronto Stock Exchange's S&P/TSX composite index ended down 36.82 points, or 0.2%, at 19,957.96.

Still, the index has gained 2.7% since the beginning of the month and is on track for its second straight month of gains as investors welcome signs of decade-high inflation cooling.

Data on Wednesday showed Canada's annual inflation rate holding steady at 6.9% in October, matching analyst forecasts, while core inflation measures were mixed, leaving markets betting on a smaller rate hike at the Bank of Canada's next meeting.

The Toronto market's energy sector fell 2.3% as oil prices settled 1.5% lower at $85.59 a barrel concerns over rising COVID-19 cases in China.

The materials group, which includes precious and base metals miners and fertilizer companies, lost 1.3%, while technology ended 0.7% lower.

Consumer staples was a bright spot, rising 1.6%. It was helped by a gain of 2.3% for Loblaw Cos Ltd after the retailer raised its annual earnings forecast.

© Reuters. FILE PHOTO: The Art Deco facade of the original Toronto Stock Exchange building is seen on Bay Street in Toronto, Ontario, Canada January 23, 2019.   REUTERS/Chris Helgren/File Photo

Shares of Restaurant Brands International (NYSE:QSR) Inc ended 7% higher, helping drive the consumer discretionary sector to a 1.3% gain.

Industrials also gained ground, rising 1.4%.

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