Financial and technology stocks in Toronto were sharply lower on Thursday due to concerns about potential interest rate increases. The minutes from the Federal Reserve’s June policy meeting released on Wednesday did not alleviate market expectations of a rate hike this month. Additionally, data from payroll-services firm ADP showed that the U.S. private sector added more jobs in June than anticipated. The Bank of Canada is also expected to make a decision on interest rates next week after pausing its aggressive tightening campaign last month.
Lower Index Levels
The S&P/TSX Composite Index was down 1.5% at 19,805.40, while the blue-chip S&P/TSX 60 fell 1.5% to 1,192.51.
Decline in Banking Shares
Shares of Canada’s major banks experienced a decline, with each seeing a decrease of at least 0.9%. Toronto-Dominion Bank had the largest drop at 2.3%.
Other Significant Market News
Richelieu Hardware, a specialty hardware manufacturer and distributor, reported a 35% decrease in second-quarter net earnings as sales declined. As a result, its shares were down 5.7% at C$39.30.