S&P/TSX composite falls, loonie drops after Bank of Canada warns of risks
TORONTO —
Canada’s main stock index moved lower on economic growth concerns, while the loonie fell after the Bank of Canada warned of risks but left interest rates unchanged.
The Federal Reserve’s latest survey of business conditions, called the “Beige Book,” pointed to slower economic activity in July and August, mostly related to growing worries about COVID-19 variants.
September is a seasonally weak time of the year while a slowdown raises concerns for companies that have lapped easy comparisons from the prior year when activity was suppressed by the virus.
“Those are things that should be broadly understood by the market, but nonetheless, when they come out, you certainly do see pressure on equities, and that’s what we’re seeing today,” said Mike Archibald, vice-president and portfolio manager with AGF Investments Inc.
The S&P/TSX composite index lost 64.84 points to 20,741.79.
In New York, the Dow…
