With the energy sector feeling the effects of falling oil prices and investors assessing bank earnings forecasts following inconsistent results from some of Canada’s largest lenders, the country’s main stock index closed Tuesday down, retreating from a record high.
The S&P/TSX composite index (.GSPTSE), on the Toronto Stock Exchange finished at 23,259.96, down 89.01 points, or 0.4%, from its record closing high on Monday.
Due on Friday, Canada’s gross domestic product is predicted to rise at an annualised pace of 1.6% in the second quarter, less than the 2.4% potential growth rate estimated by the country’s central bank.
After the lender revealed a lower-than-expected profit and issued a warning that it would need to keep setting aside money for loans that are unlikely to be repaid, shares of Bank of Montreal (BMO.TO) dropped 6.5%.
After the bank exceeded analysts’ earnings projections, shares of Bank of Nova Scotia (BNS.TO) performed better, jumping 2.5%.
Worries that slower economic development in the US and China could result in less demand for energy caused the energy sector to drop 2% and the price of oil to settle 2.4% lower at $75.53 per barrel.
Metal miners and fertiliser firms are part of the materials category, which finished the day with a 0.7% decline.
The property was something special. Climbing 1% to trade at its highest level since February 2023, the sector stands to gain significantly from recent drops in borrowing prices.
