The selloff in Canadian equities intensified on Tuesday amid speculations about the upcoming Bank of Canada’s interest rate decision, the key U.S. inflation data, and Q2 corporate earnings. The S&P/TSX Composite Index fell by 206 points, or 1.1%, for the day to 18,817, marking its worst single-day performance in July so far. All key sectors on the TSX, except utilities, ended the day in red, mainly led by massive losses in healthcare, technology, and consumer cyclicals shares. A continued weakness across commodity markets also drove mining and energy stocks downward on the exchange.
Top TSX movers and active stocks
Cannabis stocks like Canopy Growth (TSX: WEED)(NASDAQ: CGC) and Aurora Cannabis fell by more than 10% each yesterday, as investors remain worried about analysts’ reducing optimism on the sector amid growing recession worries. Notably, both Bank of America’s global research team and Canadian Imperial Bank of Commerce have slashed their target prices on Canopy Growth stock to $3 per share in the last 10 days. Nonetheless, Street analysts’ consensus target price on WEED stock still stands at $5.78 per share, reflecting more than 90% upside potential from its current market price of $3 per share.
Shares of Shopify and First Quantum Minerals were also among the worst-performing TSX Composite components on July 11, as they dived by over 8% each.
MTY Food Group and Advantage Energy were the only two Canadian stocks that managed to post at least 2% gains in the last session.
Based on their daily trade volume, Manulife Financial, Canadian Natural Resources, Toronto-Dominion Bank, and Suncor Energy were the most active stocks on the exchange.
TSX today
Metals prices were trading close to their lowest levels in months early Tuesday morning, which will likely take the TSX metals and mining stocks sharply lower at the open today. While crude oil prices were also easing, they were still holding well above the US$100-a-barrel mark. The expected release of the U.S. Energy Information Administration’s latest short-term energy outlook report could keep oil prices and energy stocks volatile today.
While no other major economic data is due on July 12, investors may want to remain cautious ahead of tomorrow’s U.S. inflation report, and the Canadian central bank’s interest rate decision.
