The S&P/TSX Composite Index fell nearly 1%, slipping below the 36,000 level, dragged down primarily by weakness in the banking and mining sectors. Rising oil prices extended their advance, stoking renewed worries about energy-driven inflation, while stronger-than-expected US CPI data added pressure on financials by clouding the outlook for future Federal Reserve policy moves.
Major Canadian banks traded lower, with RBC, TD Bank, BMO, and CIBC each declining by roughly 1%. The pullback was even more pronounced in the mining space, as ongoing drops in gold and silver prices deepened losses. Agnico Eagle slid more than 4.5%, Barrick retreated over 3.5%, and WPM fell nearly 4.5%.
By contrast, energy producers benefited from the renewed upswing in crude prices. Suncor and Imperial Oil both advanced by about 0.5%.
On the macro front, Canadian construction intentions jumped 8.8% in August from July, far exceeding the consensus forecast of a 2.9% increase. Among industrial and engineering names, WSP Global inched higher, while AtkinsRéalis gained more than 0.5%.
Technology shares were broadly firmer, with Shopify rising 1%. Retailers also moved higher, led by ATD, which climbed 1.5%, and Loblaw, up 1%.
