Canadian Market Deep Down In Negative Territory On Widespread Selling

(RTTNews) - Canadian stocks are languishing deep down in negative territory Thursday afternoon with investors pressing sales almost across the board amid rising fears about a possible recession due to policy tightening by global central banks.

The benchmark S&P/TSX Composite Index, which plummeted to 10,988.92, the lowest level in over 13 months, is down 588.51 points or 3.03% at 19,023.05.

All the sectoral indexes are down in the red, losing between 1 and 4.2%. Healthcare, consumer discretionary, energy, information technology, financials and real estate stocks have taken a severe hammering.

Cargojet Inc (CJT.TO) is down more than 17%. Nuvei Corp (NVEI.TO), Magna International (MG.TO), Precision Drilling (PD.TO), Shopify Inc (SHOP.TO) and Canadian Natural Resources (CNQ.TO) are down 7 to 10%.

Goeasy (GSY.TO), FirstService Corporation (FSV.TO), Kinaxis Inc (KXS.TO), West Fraser Timber (WFG.TO), Fairfax Financial Holdings (FFH.TO) and Constellation Software (CSU.TO) are lower by 2 to 6%.

First Quantum Minerals (FM.TO) is down nearly 8% on huge volumes. Air Canada (AC.TO), Crescent Point Energy (CPG.TO), Whitecap Resources (WCP.TO), Cenovus Energy (CVE.TO), Arc Resources (ARX.TO), Suncor Energy (SU.TO), Telus Corp (T.TO) and Baytex Energy (BTE.TO) are also down sharply on huge volumes.

Agnico Eagle Mines (AEM.TO), Enghouse Systems (ENGH.TO), Newcrest Mining (NCM.TO) and Franco-Nevada Corporation (FNV.TO) are bucking the trend and trading notably higher.

On the economic front, data released by Statistics Canada showed wholesale sales in Canada dropped 0.5% month-over-month to C$ 79.8 billion in April of 2022, well below preliminary estimates of a 0.2% increase.

After announcing a 75-basis point rate hike on Wednesday and leaving the door open for another rate increase of that magnitude in July, Fed Chair Jerome Powell said the central bank cannot control all the factors driving inflation.

Earlier today, the Swiss National Bank unexpectedly increased interest rates for the first time since 2007.

The Bank of England also announced another 25 basis point rate hike. The BoE's Monetary Policy Committee voted 6-3 to raise the bank rate to 1.25%, the highest rate since early 2009.