Toronto stocks pause after record-breaking rally
Updated at 10:14 a.m. ET/ 1414 GMT
By Nikhil Sharma
Sept 25 (Reuters) -Canada's main stock index fell slightly on Wednesday, taking a breather after rallying to record-high levels this month on the back of domestic and U.S. interest-rate cuts and optimism around China stimulus.
Losses in consumer discretionary and energy stocks outweighedgains in materials shares, sending the TorontoStock Exchange's S&P/TSX composite index .GSPTSE down 13.09 points, or 0.05%, at 23,939.13.
The index has notched seven all-time closing highs in the month so far.
Given there has been a lot of strength in the market over the last few weeks, "I would say it's a bit of a pause, rather than being an actual pullback", said Graham Priest, investment advisor at BlueShore Financial.
Canada's consumer discretionary sector.GSPTTCD was the biggest decliner with a 0.8% fall, weighed down by Magna International MG.TO losing 3.4% after Morgan Stanley downgraded its stock to "equal-weight" from"overweight".
The energy sector .SPTTEN, down 0.5%, was also among the top decliners, trackinglosses in oil prices as optimism around China's latest stimulus plans waned. O/R
China's bumper stimulus package on Tuesday sparked a global stock market rally, but investors haveraised doubts if the measures could provide a sustainable boost to the world's second-largest economy as it struggles with deflationary pressures.
Canada's materialssector .GSPTTMT gained 0.6%, mirroring strength in gold prices. GOL/
On Wall Street, the S&P 500 and Dow hovered near record highs on Wednesday, while investors awaited more indicators on the economy's health and upcoming interest-ratereductions.
With the Federal Reserve having already delivered a supersized interest rate cut, the odds for another 50-basis point trim at the November policy meeting stand at 59.1%. 0#FEDWATCH
Markets could get more clarity over the size of the move after FedChair Jerome Powell's speech and personal consumption expenditures (PCE) data - the central bank's preferred inflation measure - later this week.
The TSX has gained 14.1% for the year, partly driven by the country's policy easing cycle. The Bank of Canada cut rates for the third time in a row in September.
Reporting by Nikhil Sharma in Bengaluru; Editing by Leroy Leo and Devika Syamnath
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