The Toronto Stock Exchange (TSX) begins the trading week at its lowest level in 20 months as
lower commodity prices, notably for oil and natural gas, weigh down Canada’s main index.
The TSX closed last week (October 14) down 287.28 points, or 1.5%, at 18,326.25, its lowest
level since February 2021.
In addition to declining prices for crude oil and natural gas, the TSX has also been brought
lower in recent weeks by revelations that Canada’s economy, particularly the housing market, is
slowing rapidly.
The Canadian Real Estate Association just reported that September home sales fell 3.9% from
August and are 12% below their pre-pandemic 10-year average.
The cooling economy comes after the Bank of Canada raised its trendsetting interest rate to a
14-year high of 3.25% in an effort to lower inflation that is running at a 30-year high across the
country.
The TSX’s energy subcategory fell 3.4% last week as U.S. crude oil prices declined 3.9% to
trade at less than $86 U.S. per barrel.
At the same time, the TSX’s materials group, which includes precious and base metal miners
and fertilizer companies, fell 4% last week as gold and copper prices also declined.
Year-to-date the TSX is down 14%, which is better than the 25% decline recorded by the
benchmark S&P 500 stock index in the U.S.
