Canada’s main stock index closed lower on Tuesday, echoing a drop from Wall Street, as U.S. Treasury yields reached multi-year highs on bets of interest rates staying elevated for longer. The energy market was the only gainer.
Investors south of the border are also following negotiations in Washington this week, as lawmakers want to avert a government shutdown that could take place as early as this Sunday if Congress doesn’t agree on a spending bill. The S&P 500 fell to its lowest level in months after the latest home sales and consumer confidence reports raised fears over the state of the economy.
The Canadian dollar traded for 73.97 cents U.S., compared to 74.28 cents U.S. on Monday.
U.S. crude futures traded $0.92 higher at $90.60 a barrel, and the Brent contract added $0.77 to $94.06 a barrel.
The price of gold was down US$15.69 to US$1,900.59.
In world markets, the Nikkei was down 363.57 points to 32,315.05, the Hang Seng was down 262.39 points to 17,466.90, the FTSE was up 1.73 point to 7,625.72, and the DAX was down 149.62 points to 15,255.87.
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