TSX slips as material stocks weigh
Updated at 1018 ET
TSX down 0.1%
Maple Leaf Foods to close Brantford plant, shares up
Materials lead sectoral declines
By Khushi Singh
May 23 (Reuters) -Canada's main stock index reversed from early gains to trade lower on Thursday,as easing metal prices dragged material shares, while hotter-than-expected U.S. business activity data weighed on investor sentiment.
At 10:18 a.m. ET (14:18 GMT), the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was down 18.73 points, or 0.08%, at 22,328.03.
The materials sector .GSPTTMT lost 1.0%, weighed by lower prices of most metals for a third consecutive session.
Copper prices fell as profit-taking continued after the red metal hit record high levels on Monday, while gold and silver slipped after minutes of the last Federal Reserve meeting revealed a willingness to raise interest rates among some officials. GOL/ MET/L
Data showed U.S. business activity accelerated to the highest level in just over two years in May, and manufacturers reported a surge in prices for a range of inputs, suggesting that goods inflation could pick up in the months ahead.
The hotter-than-expected data, along with a fall in weekly U.S. jobless claims, reaffirmed traders' bets of higher-for-longer U.S. interest rates.
This could also weigh on Canadian markets as traders have currently priced in an interest rate cut from the Bank of Canada in July. 0#BOCWATCH
"For Canada to be cutting rates when the U.S. stands pat, there should be a line in the sand that Canada can't cross because it would be possibly detrimental down the road," said Allan Small, senior investment advisor at Allan Small Financial Group with iA Private Wealth.
The energy sector .SPTTEN added 0.5% as oil prices climbed after three days of losses. O/R
The information technology .SPTTTK index gained 0.4%, on the back of higher-than-expected forecast from U.S. chipmaker Nvidia NVDA.O, that sent its shares rallying 9.2%
Wall Street's main indexes also moved higher, driven by strong gains in chip stocks, with the S&P 500 .SPX and Nasdaq .IXIC notching record highs..N
Shares in Maple Leaf Foods MFI.TO added 1.1% on plans to close its Brantford plant and consolidate production into other facilities, pushing the broader consumer staples .GSPTTCS index 0.6% higher.
Reporting by Khushi Singh in Bengaluru; Editing by Ravi Prakash Kumar
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