Canadian stocks faced a sharp decline on Wednesday as investors digested the recent Canadian inflation report, which revealed an increase in inflation during December.
Factors Influencing Bank of Canada's Decision
According to reports, the Bank of Canada may consider taking a different approach than the Federal Reserve when it comes to cutting rates. This decision is driven by several factors, including high wage growth, rising shelter costs, and unexpected immigration trends, as reported by FactSet.
Sector Performance and Stock Movements
Most sectors experienced declines, with notable losses seen in the technology, materials, and health tech industries. The only positive performance came from the consumer discretionary stocks.
Here are some key stock movements:
- Canada's S&P/TSX Composite Index dropped 1.47% to reach 20,640.43.
- The blue-chip S&P/TSX 60 fell 1.43% to 1,245.78.
Teck Resources saw a 2.4% decrease in their stock price, falling to 49.80 Canadian dollars. This decline followed the company's announcement that their copper production for 2023 did not meet expectations, and they anticipate continued cost pressures.
Other market movers included:
- Pan American Silver, which witnessed a 6.6% drop in stock price to C$18.54 due to missed silver and zinc production targets in 2023.
- FPX Nickel, which experienced an almost 11% decrease in shares to C$0.29 after securing a C$14.5 million investment from Japanese metals miner and producer Sumitomo Metal Mining for a 9.9% stake.
- Rogers Communications, which disclosed the retirement of two board members and members of the Rogers family as part of a private family settlement. The company's shares were down 1.3% to C$63.35.
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