Canadian Stocks Seeing Modest Weakness After Yesterday's Rate Hike

(RTTNews) - Canadian stocks are seeing modest weakness during trading on Thursday, extending the pullback seen in the previous session.

The benchmark S&P/TSX Composite Index has climbed off its worst levels of the day but remains down 50.18 points or 0.3 percent at 19,933.51.

Concerns about the impact of the Bank of Canada's return to raising interest rates may continue to be weighing on the markets.

After leaving interest rates unchanged for two straight meetings, the Bank of Canada increased its target for the overnight rate by 25 basis points to 4.75 percent on Wednesday, citing stubbornly high inflation and stronger than expected economic growth.

Healthcare stocks are seeing considerable weakness on the day, dragging the S&P.TSX Capped Health Care Index down by 1.6 percent.

Notable weakness is also visible among energy stocks, as reflected by the 1.1 percent drop by the S&P/TSX Capped Energy Index.

The weakness in the energy sector comes amid a steep drop by the price of crude oil, with crude for July delivery plunging $2.37 to $70.16 a barrel.

Telecom and industrial stocks have also moved to the downside, while gold stocks are seeing some strength amid an increase by the price of the precious metal.