TSX is heading for its worst day in nearly two weeks as tech stocks fall

A man walks past an old Toronto Stock Exchange sign in Toronto

Technology stocks are falling while interest rates are rising
BMO decreases due to closure of business units
TSX fell 0.6%, marking its worst day in almost two weeks

Sept 18 (Reuters) – Toronto stocks faltered on Monday, hurt by rate-sensitive technology stocks, while U.S. Treasury yields rose as investors eagerly await inflation data this week that could provide further insight into the Bank of Canada’s (BoC) interest rate outlook ) .

At 10:22 a.m. ET (1422 GMT), the Toronto Stock Exchange’s S&P/TSX composite index (.GSPTSE) fell 136.5 points, or 0.66%, to 20,485.84, having its worst day in almost two weeks.

Technology stocks (.SPTTTK), the leading sector decliners, fell 0.8%, mirroring a decline in some US mega-cap and chip stocks as yields moved higher.

Real estate stocks (.GSPTTRE) also fell 0.6% after data showed Canadian housing starts fell 1% in August compared to the previous month.

Producer prices rose 1.3% in August compared to July, due to higher prices for energy and chemical products.

The key data Tuesday will focus on annual inflation in Canada, which is expected to rise from 3.3% in July to 3.8% in August.

On a monthly basis, the consumer price index (CPI) has likely cooled from 0.6% to 0.3%, LSEG data shows.

“There is no doubt that annual inflation will remain slightly higher. The question is whether the BoC will recognize that this is more (due to) base effects, or whether they will feel they have to respond to this,” said Philip Peturrson, chief investment strategist at IG Wealth Management.

Investors will also keep an eye on the US Federal Reserve’s monetary policy meeting on Wednesday, where the central bank is widely expected to leave interest rates unchanged.

Shares of Bank of Montreal (BMO.TO) fell 1.1% after the third-largest Canadian lender said Saturday it was winding down its indirect retail auto financing business and shifting focus to other areas

The broader financial index (.SPTTFS) fell 0.6%.

Reporting by Siddarth S in Bengaluru; Editing by Tasim Zahid

Our standards: Thomson Reuters Trust Principles.

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