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By Fergar Smith
TORONTO (Reuters) – Canada’s main stock index fell to a five-week low on Thursday as investors could see no clear end to the Federal Reserve’s interest rate hikes. Technology and materials stocks led losses. The S&P/TSX Composite Index closed lower on the Toronto Stock Exchange hange 11. points, or 1.5%, at
,50., the lowest close since Nov. 9.
U.S. stock indexes also plunged after the Federal Reserve raised interest rates by half a percentage point on Wednesday and signaled further hikes next year.
Hope the Fed softens its stance to help stocks come off their October lows.
“Without any definite end, I think people are starting to realize the pressure that will be put on all the debt,” said Michael Sprung, president of Sprung Investment Management: “Variable rates may be expiring soon. ”
“It’s definitely pointing more and more toward a recession. I think the language they (the Fed) expressed yesterday pretty much spoke to the fact that they’re not afraid of a hard landing. ” All TSX Down 1.8%. Higher interest rates reduce the value to investors of the future cash flows expected to be generated by companies in the sector.
Material group , which includes precious and base metals miners and fertilizer companies, fell 3.3 percent.