TSX Ends Notably Lower

(RTTNews) - The Canadian stock ended notably lower on Tuesday on geopolitical tensions and the Federal Reserve's hint that the interest rate cut likely to happen soon will be smaller than expected.

A sell-off in the information technology space contributed substantially to market's negative close. Weakness in energy and materials sections after gold and crude oil futures failed to hold at higher levels weighed as well.

Investors were also digesting Canadian wholesale sales data.

The benchmark S&P/TSX Composite Index ended down 152.19 points, or 0.92%, at 16,371.28.

The Capped Information Technology Index ended down 3.55%. Shopify Inc. (SHOP.TO) ended lower by about 9% following a rating downgrade. Photon Control Inc. (PHO.TO) lost about 6% and Enghouse Systems (ENGH.TO) declined 4.75%.

BlackBerry (BB.TO), Descartes Systems Group, Kinaxis Inc. (KXS.TO), Sierra Wireless (SW.TO), Open Text Corp (OTEX.TO), CGI Group (GIB.A.TO) and Constellation Software (CSU.TO) lost 1.3 to 2.5%.

Energy shares Ensign Energy Services (ESI.TO), Baytex Energy (BTE.TO), Parex Resources (PXT.TO), Crescent Point Energy (CPG.TO) and Suncor Energy (SU.TO) lost 1 to 4.3%.

In the materials space, MAG Silver Corp (MAG.TO) plunged more than 6%. Osisko Gold Royalties (OR.TO) ended lower by 5.3%. Western Forest Products (WEF.TO), Semafo (SMF.TO), Yamana Gold (YRI.TO), Hudbay Minerals (HBM.TO) and Agnico Eagle Mines (AEM.TO) lost 2 to 4%.

Franco-Nevada Corporation (FNV.TO), Methanex Corp. (MX.TO) and Canfor Corp. (CFP.TO) also declined sharply.

Consumer discretionary shares Canada Goose Holdings (GOOS.TO), Hudsons Bay (HBC.TO), Gildan Activewear (GIL.TO) and The Stars Group (TSGI.TO) lost 1 to 2.3%.

In the industrials space, Canadian Pacific Railway (CP.TO), Waste Connections (WCN.TO), Canadian National Railway (CNR.TO) and Thomson Reuters (TRI.TO) declined by 1 to 1.8%.

Cannabis shares Hexo Corp. (HEXO.TO) and CannTrust Holdings (TRST.TO) lost 4.4% and 2.9%, respectively. Aphria Inc. (APHA.TO) shed 2.6%, Cronos Group (CRON.TO) declined 2.2% and Canopy Growth Corporation (WEED.TO) ended lower by about 2%.

Among bank stocks, Bank of Montreal (BMO.TO), Royal Bank of Canada (RY.TO), Canadian Imperial Bank of Commerce (CM.TO), Toronto-Dominion Bank (TD.TO), Laurentian Bank (LB.TO) and Bank of Nova Scotia (BNS.TO) lost 0.4 to 0.9%. National Bank of Canada edged down marginally.

Onex Corp. (ONEX.TO) announced that it has received approval from Canada's Minister of Transport, for its C$3.5 billion buyout offer for WestJet Airlines (WJA.TO). WestJet and Onex entered into a friendly deal last month to pay $31 per share cash for the airline, which will operate as a privately held company. Shares of Onex were down by about 0.35%, while WestJet rose 1.4%.

On the economic front, data released by Statistics Canada this morning showed wholesale sales increased by 1.7% to $65.3 billion in April, moving up for the fifth consecutive month. In March, wholesale sales increased 1.4%.

U.S. stocks ended notably lower reacting to reports showing a deterioration in consumer confidence in the month of June and a steep drop in new home sales in May.

Investors also noted that the Fed chief Jerome Powell, who acknowledged that crosscurrents have reemerged since the Fed's May meeting, did not appear to signal the imminent interest rate cut currently being priced in by the markets.

European markets ended mostly lower. Most of the markets across the Asia-Pacific region also ended weak.

In commodities, West Texas Intermediate crude oil futures for August ended down $0.07, or less than 0.1%, at $57.83 a barrel.

Gold futures for August ended up $0.50, or 0.04%, at $1,418.70 an ounce, after rising to a high of $1,442.90 an ounce.

Silver futures for July ended down $0.077, at $15.300 an ounce, while Copper futures for July settled at $2.7355 per pound, gaining $0.0300.
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