TSX Sheds Nearly 2% As Stocks Tumble On Inflation Data, Global Sell-off

(RTTNews) - Canadian stocks tumbled on across the board selling Wednesday as data showing continued surge in inflation and looming interest rate hikes weighed on sentiment.

A sell-off in European and the U.S. markets, and weak crude oil prices added to the woes.

The benchmark S&P/TSX Composite Index ended with a loss of 389.63 points or 1.9% at 20,101.38, around 60 points off the day's low of 20,040.48.

Healthcare, consumer discretionary and consumer staples stocks tumbled. Materials, industrials, financials, energy and technology stocks too declined sharply.

The Health Care Capped Index drifted down 4.44%. Bausch Health Companies (BHC.TO) plunged more than 9%. Tilray Inc (TLRY.TO), Aurora Cannabis (ACB.TO) and Cronos Group (CRON.TO) lost 5.9 to 6.3%. Well Health Technologies (WELL.TO) and Canopy Growth Corp (WEED.TO) shed 5% and 4.8%, respectively.

Consumer discretionary stocks Brp Inc (DOO.TO), Canada Goose Holdings (GOOS.TO) and Dollarama (DOL.TO) ended lower by 7.3 to 8%. Sleep Country Canada Holdings (ZZZ.TO) and Aritzia Inc (ATZ.TO) lost 6% and 5.6%, respectively.

In the consumer staples section, Jamieson Wellness (JWEL.TO) fell 6.5%. Alimentation Couche-Tard (ATD.TO) shed 5.6%, while Premium Brands Holdings (PBH.TO), Saputo Inc (SAP.TO) and North West Company (NWC.TO) lost 4 to 4.7%.

Materials stocks Interfor Corp (IFP.TO) and Endeavour Silver Corp (EDR.TO) lost 10% and 6%, respectively. Canfor Corp (CFP.TO), First Quantum Minerals (FM.TO), Capstone Mining (CS.TO) and Stelco Holdings (STLC.TO) ended lower by 5 to 5.6%.

Energy shares Vermilion Energy (VET.TO), Paramount Resources (POU.TO), Advantage Oil & Gas (AAV.TO), Topaz Energy (TPZ.TO), Baytex Energy (BTE.TO), Enerplus Corp (ERF.TO), MEG Energy (MEG.TO) and Canadian Natural Resources (CNQ.TO) declined sharply.

In the technology section, Dye & Durham plunged 11.8%. Converge Technology Solutions (CTS.TO) and Hut 8 Mining Corp (HUT.TO) shed 7.7% and 6.5%, respectively.

Bank of Nova Scotia (BNS.TO), CDN Western Bank (CWB.TO), Canadian Imperial Bank of Commerce (CM.TO), Bank of Montreal (BMO.TO), Laurentian Bank (LB.TO), Toronto-Dominion Bank (TD.TO), Manulife Financial (MFC.TO) and Fairfax Financial Holdings (FFH.TO) lost 1 to 2.5%.

Data released by Statistics Canada showed Canada's annual inflation rate quickened to 6.8% in April of 2022, the highest since January of 1991 and slightly above market expectations of 6.7%. On a monthly basis, consumer prices rose 0.6%, marginally above forecasts of 0.5%, but easing from the 1.4% jump in March.

Core consumer prices in Canada increased 5.7% year-on-year in April of 2022, the most on record, above 5.5% in March and forecasts of 5.2%. On a monthly basis, consumer prices increased 0.7% in April, slowing from a 1% rise in the prior month.

U.S. stocks fell sharply today and the major averages ended the session near their worst levels. The Dow plunged 3.6%, the Nasdaq plummeted 4.7% and the S&P 500 tumbled 4%.

European stocks closed lower on Wednesday, weighed down by concerns about soaring inflation and the likely impact on growth the aggressive policy tightening by central banks might cause in the near to medium term.

The pan European Stoxx 600 ended 1.14% down. The U.K.'s FTSE 100 drifted down 1.07%, Germany's DAX ended lower by 1.26% and France's CAC 40 shed 1.2%, while Switzerland's SMI lost 1.29%.