A sell-off of technology stocks to the U.S. is reverberating in Canada, even though the sector makes up only a 10th for the stock market that is nation’s.
The share that is little of stocks to Canada’s market helped the S&P/TSX Composite Index outperform its U.S. counterpart Thursday: Canada ended up being down 1.5%, as the S&P 500 Index plunged 3.5%. But because the rout continued for the second day, the TSX became damage that is collateral.
The equity market fell for the session that is second Friday as traders honed in on lofty valuations of tech stocks, brushing past solid jobs data from both the U.S. and Canada. The benchmark that is Canadian the week 2.9% reduced, its slump that is biggest since June 12, although the S&P 500 dropped 2.3 percent.
Canadian stocks post biggest loss that is weekly 3 months
a drop in the price of gold and oil also weighed on the stock that is nation’s, with mining and energy stocks making up about 26% of the index.
With markets closed for Labor Day, investors have shortened week packed with central bank rate decisions and data releases which are economic Monday. Commodities investors will be watching the European Central Bank’s price choice Sept. that is due 10 top main banks debate how best to perform policy that is monetary. Closer to home, the bank of Canada will launch its policy declaration on Sept. 9 and Governor Tiff Macklem will give a progress that is economic the time that is next. A sell-off of technology stocks to the U.S. is reverberating in Canada. The Canadian Index has been a strong performer of late, and even in the age of recovery from Caronavirus woes seemed to be doing well overall. Now, that streak has broken along tech lines.