CANADA STOCKS-Toronto index falls as healthcare, tech shares weigh

·2 min read

(Updates prices, adds analyst comments)

By Amal S

June 29 (Reuters) - Canada's main stock index fell on Wednesday, weighed by weakness in healthcare and technology shares amid growing fears that aggressive policy tightening by central banks to tackle inflation will tip economies into recession.

At 9:45 a.m. ET (13:45 GMT), the Toronto Stock Exchange's S&P/TSX composite index was down 75.31 points, or 0.39%, at 19,147.43.

U.S. stocks also inched lower at the open after several policymakers made a case for faster interest rate hikes to tamp down inflation as a string of recent data continued to paint a dour picture for the economy.

"Worries once again rising about how far interest rates will need to rise to curb inflation and what this means for growth," said Stuart Cole, head macro economist at Equiti Capital.

"I think sentiment is shifting to the view that the U.S. Fed will not be able to avoid a hard landing and that the U.S. economy is destined to tip into recession."

Healthcare and technology shares led losses on the index with both down 3.1% and 2.1% respectively.

Limiting further losses was the energy sector up 0.5% as oil prices gained for a fourth straight session with tight supply worries offsetting concerns about a weaker global economy.

The financial sector slipped 0.2%, while the industrial sector fell 0.3%.

The benchmark index, down 12.5% so far this quarter, was on track to record its worst quarterly performance since pandemic-led slump in 2020.

The materials sector, which includes precious and base metal miners and fertilizer companies, gained 0.1% in early trading as gold futures rose 0.6% to $1,827.8 an ounce. (Reporting by Amal S in Bengaluru; Editing by Anil D'Silva)

Our goal is to create a safe and engaging place for users to connect over interests and passions. In order to improve our community experience, we are temporarily suspending article commenting