Canadian Stocks Fall Most in Four Months as Energy Shares Sinkby
Investors brace for Fed meeting, Brexit later this month
All 10 groups in S&P/TSX retreat, as energy adds most to fall
Canadian stocks fell a third day, sliding the most in four months, as energy producers tumbled with the price of oil and investors braced for a series of events this month that could renew turbulence in markets.
The S&P/TSX Composite Index slid 1.4 percent to 14,037.54 at 4 p.m. in Toronto. While the benchmark touched the highest level in 10 months earlier this week, it has fallen 2.3 percent in the last three days. Trading volume today was 11 percent lower than the 30-day average.
Global stocks also posted the steepest drop since February and bond yields slid to record lows, before next week’s Federal Reserve meeting and Britain’s referendum on European Union membership this month. Canadian shares remain more expensive relative to their U.S. peers, trading at 21.5 times earnings, about 11 percent higher than the 19.4 times valuation of the S&P 500 Index.
Energy producers contributed the most to declines today, as all 10 industries in the Canadian equity benchmark retreated. Gran Tierra Energy Inc. and Baytex Energy Corp. lost at least 7.4 percent. Crude futures dipped below $50 a barrel in New York as a rising U.S. dollar countered declining crude stockpiles and disruptions from Canada to Nigeria.
Transcontinental Inc., a Montreal-based commercial printer of flyers, plunged 9.9 percent after posting second-quarter profit that fell short of analysts’ estimates.