Canadian stocks drop in catch-up trade after global selloff

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Canadian stocks tumbled at the open, then pared those losses, as traders caught up after the Toronto Stock Exchange and other venues were closed for a public holiday during Monday’s global selloff.

BNN Bloomberg's Jon Erlichman looks at how North American markets are shaping up for the trading day.

At the open in Toronto, the S&P/TSX Composite Index dropped as much as 2.6 per cent, extending losses for a third trading day. The index pared losses to 1.4 per cent as of 11:16 a.m. in Toronto. Four stocks were falling for every one that gained. The Canadian equities benchmark is on pace for its worst three-day stretch since October 2022.

“When markets move, long weekends get cancelled,” Purpose Investments Chief Market Strategist Craig Basinger wrote in a Monday note to clients, saying the firm had been buying in its multi-asset portfolios on Monday while the TSX was closed. Tuesday’s drop in Toronto was exacerbated by a move lower in gold prices, which extended Monday’s slide. The worst-performing stocks in the index on Tuesday were gold miners including SSR Mining Inc. and Lundin Gold Inc.Monday’s selloff appeared to be part of a reversal out of tech stocks and into lower volatility alternatives, “and historically the TSX outperforms the U.S. markets during those periods,” Bloomberg Intelligence equity strategist Gillian Wolff said.

 

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