TSX set for weekly losses on commodities weakness
April retail sales up 0.7%, a drop likely for May
May producer prices flat
Lassonde announces agreement to acquire Zidian Group
TSX down 0.1%
Updated at 10:20 a.m. ET
By Nikhil Sharma
June 21 (Reuters) –Toronto stocks were set for their fifth weekly decline as mining shares fell on Friday, while investors assessed the latest batch of domestic and U.S. economic data for more clues on the Bank of Canada’s interest-rate trajectory.
At 10:20 a.m. ET (14:20 GMT), the S&P/TSX composite index .GSPTSE was down 18.07 points, or 0.08%, at 21,563.28.
Material shares .GSPTTMT were the top losers, with a 1.5% fall, as sluggish demand from China dented base metal prices. Prices of precious metals were also down. MET/L GOL/
“Canadian markets tend to move more with commodities and weakness in the U.S. dollar,” said Allan Small, senior investment advisor at Allan Small Financial Group with iA Private Wealth.
Canada’s retail sales expanded 0.7% in April as expected, bucking a trend of decline in the past three months as sales at gasoline pumps boosted the overall numbers, data showed on Friday.
Separately, producer prices were unchanged in May from April as lower prices for energy and petroleum products were offset by higher prices for primary non-ferrous metal products.
Traders are currently pricing in a 72.2% chance of another 25-basis point rate cut by the Canadian central bank.
“If we see Canadian CPI come in again lower than expected, we are going to start to hear talks about another cut in July.” Small added.
The S&P 500 and the Nasdaq fell on Friday weighed down by chip stocks. U.S. business activity crept up to a 26-month high in June amid a rebound in employment, but price pressures subsided considerably.
Food and beverage company Lassonde Industries LASa.TO rose 1.6% following an agreement to acquire U.S.-based specialty food manufacturer Zidian Group for $235 million.
Reporting by Nikhil Sharma in Bengaluru; Editing by Shreya Biswas
