Canadian Stocks Tumble To Lowest Levels In Over A Month

(RTTNews) - Extending the pullback seen over the two previous sessions, Canadian stocks showed a substantial move to the upside during trading on Tuesday.

The benchmark S&P/TSX Composite Index plunged 262.60 points or 1.3 percent to 20,252.64, tumbling to its lowest closing level in over a month.

Concerns about the outlook for U.S. interest rates continued to weigh on the markets amid a sharp increase by U.S. treasury yields.

Recent economic data has led to worries the Federal Reserve may raise rates higher than currently anticipated and keep rates at an elevated level for an extended period.

On Wednesday, the Fed is scheduled to release the minutes of its latest monetary policy meeting, which could shed additional light on the outlook for interest rates.

Healthcare stocks turned in some of the worst performances on the day, resulting in a 4.7 percent nosedive by the S&P/TSX Capped Health Care Index.

Significant weakness was also visible among technology stocks, as reflected by the 1.9 percent slump by the S&P/TSX Capped Information Technology Index.

Real estate, utilities financial and consumer stocks are also saw notable weakness, moving lower along with most of the other major sectors.

On the economic front, Statistics Canada released a report showing the annual rate of Canadian consumer price growth slowed to 5.9 percent in January from 6.3 percent in December.

Statistics Canada said prices for cellular services and passenger vehicles contributed to the deceleration, while mortgage interest cost and prices for food continue to rise.

On a monthly basis, Canadian consumer prices rose by 0.5 percent in January after falling by 0.6 percent in December, with the rebound reflecting higher gasoline prices.

A separate Statistics Canada report said Canadian retail sales increased by 0.5 percent in December, led by sales by motor vehicle and parts dealers and general merchandise stores.

The report said core retail sales, which exclude gasoline stations and motor vehicle and parts dealers, also climbed by 0.4 percent.