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TSX falls to over 3-week low after hot US inflation data

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TSX down 1.7%

Technology shares weigh

SSR Mining suspends operations at mine, shares plummet

Updated at 10:27 a.m. ET/ 1527 GMT

By Purvi Agarwal

Feb 13 (Reuters) - Canada's main stock index dropped to over a three-week low on Tuesday due to a broad sell-off after data showed that US inflation had slowed down less than anticipated in January, reducing hopes for an early interest rate cut by the Federal Reserve.

At 10:27 a.m. ET (15:27 GMT), the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was down 358.24 points, or 1.7%, at 20,709.06.

The Canadian benchmark index is on track for its worst day in over four months if losses hold.

U.S. consumer prices index (CPI) increased 0.3% in January, beating expectations, amid rises in shelter and healthcare costs, the Labor Department's Bureau of Labor Statistics said on Tuesday.

Wall Street's main indexes also fell at open after the hot inflation data drove U.S. Treasury yields higher. .N

"On the backdrop of such number, which is surprise on the upside, there is a very good probability that rate cuts may take longer, which certainly would impact sentiment when it comes to how equities will perform", said Claudio Chisani, portfolio manager at BlueShore Wealth.

"The narrative of keeping the rates unchanged could put some strain on the economy, both in the US and Canada", he said.

Rate-sensitive technology stocks .SPTTTK dragged the index, falling 3.6% and were on track for their worst day since Oct. 2023.

E-commerce platform Shopify SHOP.TO fell 8.4% to weigh the most on technology stocks, after it forecast its Q1 revenue growth rate below estimates.

The materials sector .GSPTTMT, housing Canadian miners dropped 2.9% after gold prices slipped and copper prices pared gains on a stronger dollar after the inflation print. GOL/ MET/L

Consumer discretionary stocks .GSPTTCD also lost 1.7%, dragged down by Restaurant Brands International QSR.TO that shed 2.2%, after its fourth-quarter results.

Canada-listed shares of gold miner SSR Mining SSRM.TO plummeted 48.3% to the bottom of the index after the company announced suspension of operations at its Çöpler mine.

Meanwhile, oil and gas company Parex Resources PXT.TO lost 6.6% after it announced an update on disrupted operations in Northern Llanos.

Reporting by Purvi Agarwal in Bengaluru; Editing by Ravi Prakash Kumar


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