(Updated at 10:38 a.m. ET/ 1538 GMT)
By Ragini Mathur and Nikhil Sharma
Dec 12 (Reuters) – Canada’s main stock index dropped to a more-than-two-week low on Thursday, dragged by commodity stocks, as investors grew nervous about the domestic economic growth amid looming tariff threats by Donald Trump.
The Toronto Stock Exchange’s S&P/TSX composite index was down 209.55 points, or 0.82%, at 25,448.45, and was trading at its lowest since Oct. 31.
At least nine sectors on the index nursed losses, led by the commodity-focussed sectors, with materials falling 2.1%, tracking gold and copper prices.
The heavyweight energy also declined 2% as oil prices decreased following forecasts of ample supply, which offset the optimism around a potential U.S. interest rate cut.
The Canadian central bank slashed its key policy rate by 50 basis points on Wednesday to help boost the country’s slower growth.
“This is the fifth consecutive rate cut and another super-sized cut as well” and “signals a weaker-than-expected economy in Canada,” said Shiraz Ahmed, senior portfolio manager and founder of Sartorial Wealth at Raymond James.
“Adding to this are the ongoing tariff discussions,” Ahmed continued, which he said are among the factors that are “creating a sense of unease in the markets”.
Trump’s tariff threats have raised fears of a trade war between the U.S. and Canada, with the majority of Canadian oil exports sent across the border.
Among individual stocks, Empire Company jumped 7.6% to scale to an all-time high after the food and retail distribution company surpassed estimates for second-quarter profit.
Imperial Oil fell 4.8% following its forecast of higher crude production in 2025, as the Canadian energy major expects to ramp up output from existing oil sands assets.
Stateside, producer prices rose more than anticipated in November, while weekly jobless claims unexpectedly rose last week. (Reporting by Ragini Mathur; Editing by Vijay Kishore)
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