TSX hits 4-month low as investors price in slower economic growth #CanadaFinance

By Nikhil Sharma and Fergal Smith

(Reuters) -Canada’s main stock index extended its recent declines on Tuesday, including losses for financial and consumer-related shares, as the implementation of U.S. tariffs grew more unpredictable and investors prepared for a slowdown in economic growth.

The Toronto Stock Exchange’s S&P/TSX composite index ended down 132.51 points, or 0.5%, at 24,248.20, its lowest closing level since October 31.

U.S. stocks also closed lower as a threat of fresh U.S. tariffs contributed to volatility.

U.S. President Donald Trump ramped up a burgeoning trade war with Canada, vowing to double tariffs set to take effect within hours on all imported steel and aluminum products from America’s northern neighbor to 50%, although he later said he would likely lower them after Canadian officials agreed to talks.

“The market is anticipating a slowdown in future growth and it’s trying to price it in,” said Allan Small, senior investment advisor at Allan Small Financial Group with iA Private Wealth.

A Reuters poll on Friday found that recession risks were mounting for the U.S., Mexico and Canada.

The Bank of Canada has lowered its benchmark interest rate by two percentage points since June to support the domestic economy. Investors expect the central bank to ease by a further 25 basis points on Wednesday.

The consumer staples sector fell 2.8%, with shares of food retail company Empire Company Ltd down 3.4%.

Consumer discretionary was down 1.8%, industrials lost 1.4% and heavily weighted financials ended 1.4% lower.

Resource shares helped limit the TSX’s losses.

The materials sector, which includes fertilizer companies and metal mining shares, added 2.7% as gold and copper prices rallied.

Energy rose 0.7% as the price of oil settled 0.3% higher at $66.25 a barrel.

(Reporting by Fergal Smith in Toronto and Nikhil Sharma in Bengaluru; Editing by Leroy Leo and Lisa Shumaker)