CANADA STOCKS-TSX pulls back from record high as investors turn focus to Jackson Hole
By Fergal Smith
Aug 14 (Reuters) - Canada's main stock ended lower on Thursday, led by declines for industrial and technology shares, as a large increase in U.S. producer prices complicated the inflation outlook for the Federal Reserve ahead of a major economic gathering next week.
The S&P/TSX composite index .GSPTSE was down 77.44 points, or 0.3%, at 27,915.99, after posting on Wednesday a record closing high.
"Markets are waiting to see what the central bankers have to say at Jackson Hole next week, and we're in that lull after most of the quarterly earnings results have come out, although not all of them," said Brian Madden, chief investment officer at First Avenue Investment Counsel Inc.
The Kansas City Federal Reserve's annual symposium in Jackson Hole, Wyoming is due to be held August 21-23. The event is often attended by the world's most influential monetary policymakers.
U.S. producer prices increased by the most in three years in July. The data is likely to bolster concerns among Fed policymakers that rising inflation remains a risk, intensifying debate over the rationale for an interest rate cut next month.
The technology sector .SPTTTK fell 3.1%, its second-straight day of declines, and industrials ended 1.1% lower.
Bird Construction BDT.TO shares tumbled 15.4% after the company's quarterly profit missed estimates.
"While the index is down overall, there's a bit of a defensive rotation going on within the market," Madden said.
Defensive stocks, such as telecom companies, utilities and real estate tend to pay high dividends and be less economically sensitive than the broader market. The communication services index .GSPTTTS rose 0.8%, the utilities group .GSPTTUT was up 0.2% and real estate .GSPTTRE ended 0.3% higher.
Energy .SPTTEN also posted gains, rising 0.4%, as the price of oil CLc1 settled 2.1% higher at $63.96 a barrel ahead of a meeting on Ukraine between U.S. President Donald Trump and his Russian counterpart Vladimir Putin.
Related Articles
[U.S. IPO] BNPL Firm Klarna Set for IPO, Valuation Only Half That of Affirm Amid High Demand
TradingKey - Swedish fintech firm Klarna, is set to finalize its IPO pricing on Tuesday evening, as it continues to gain fame for its "Buy Now, Pay Later" (BNPL) services. The company is valued at just $14 billion, which is half of its U.S. rival Affirm Holdings' valuation, yet it is attracting stro.jpg)
U.S. August CPI Preview: Persistent Rise in Inflation, What Impact on Rate Cuts? And on US Stocks?
TradingKey - On 11 September 2025, the U.S. will publish August CPI data. Consensus forecasts indicate a 0.3% month-over-month increase for both headline CPI and core CPI. As a result, headline CPI year-over-year may climb to 2.9%, up from 2.7%
U.S. August Nonfarm Payroll Preview: Risks Focus on Downward Revision of July Data
TradingKey - On 5 September 2025, the U.S. Department of Labour will release the August Non-Farm Payrolls report. The market widely expects August to see an addition of 75,000 non-farm jobs, roughly in line with July’s 73,000.
Unlocking Gold’s Next Leg: $4,000 in Reach by 2025？
TradingKey - Gold has kicked off a fresh uptrend in early September, breaking out of months of compression and reclaiming key territory. The decisive move above $3,500 establishes a new support base and puts higher objectives back on the table for the weeks ahead
US NFP Nightmares Preview: A Tiny August Revision, a Huge Annual Benchmark Cut And a Fed in Flux
TradingKey - Wall Street expects modest job growth and a rebound in the unemployment rate in August NFP report, a balanced outcome that could support a September rate cut. However, a massive downward revision — a “terrifying scene” — and anomalies on the supply side could plunge the Fed into deeper (1).jpg)
