(Adds comments, updates prices)
Nov 3 (Reuters) – Canada’s main stock index fell on Thursday, dragged down by gold miners as prices of bullion fell against a stronger dollar after the U.S. Federal Reserve signaled its rate-hike cycle was far from over.
At 10:19 a.m. ET (14:19 GMT), the Toronto Stock Exchange’s S&P/TSX composite index fell 0.54% to 19,172.79.
The materials sector, which includes precious and base metal miners, declined 3.3% to its lowest in a month after gold prices slumped to a five-week low.
Commodity prices tumbled against a stronger dollar after the Fed raised interest rates by another 75 basis points and hinted at a higher than previously estimated peak rate.
“The biggest impact (of Fed decision) has been that stock markets around the world have been selling off since Powell’s comment and that has put pressure on everything,” said Colin Cieszynski, chief market strategist at SIA Wealth Management.
“We’ve seen commodities sell off, those have the potential to drag on the Canadian market.”
Suncor Energy Inc gained 1.7% after its third-quarter profit beat analysts’ expectations, boosting the energy index despite lower oil prices.
Meanwhile, Canada’s government will outline its new fiscal forecasts and update its spending plans against the backdrop of a stalling economy brought on by a steep rise in interest rates. The document will be published at about 4 p.m. ET (2000 GMT).
Among individual stocks, Equinox Gold Corp crashed to the bottom of the TSX, falling 15.2% after it reported a bigger-than-expected quarterly loss.
Nutrien Ltd fell 13.4% after it cut its full-year adjusted earnings forecast. (Reporting by Shashwat Chauhan in Bengaluru; Editing by Vinay Dwivedi and Shailesh Kuber)