CANADA STOCKS-TSX sets record low as economic uncertainty weighs


(Add quotes and investor details throughout, update prices)

* TSX ends 0.1% lower

* Index hits intraday high of 20,897.57

* The energy sector fell by 0.7%; materials down 0.6%

* Shares of uranium producers jump

By Fergal Smith

TORONTO, Sept. 7 (Reuters) – The main Canadian stock index edged down on Tuesday as worries about the global economic outlook weighed on resource stocks as the market fell to a record low.

The Toronto Stock Exchange’s S & P / TSX Composite Index ended down 14.80 points, or 0.1%, at 20,806.63, after hitting a record intraday high of 20,897.57.

Investors returned from the “summer heatwave” with a more cautious stance towards equities, said Macan Nia, senior investment strategist at Manulife Investment Management.

The concern is that there has not been a pullback in the market, but also that the global spread of the Delta variant of the coronavirus could slow the economic recovery.

U.S. crude oil futures fell 1.4% to $ 67.35 a barrel, under pressure from concerns over weak demand in the U.S. and Asia as well as a stronger U.S. dollar , and copper futures fell 1.2%.

The energy group on the Toronto Stock Exchange fell 0.7%, while the materials group, which includes precious metals and base metals mining companies and fertilizer companies, lost 0.6% .

Nonetheless, lax monetary policy and earnings growth remain favorable to equities, Nia said, adding that “just because we got high returns doesn’t mean the market can’t rise.”

The TSX has gained about 19% since the start of the year.

The financial services sector, which accounts for about 30% of the Toronto market, gained 0.3%, while information technology was up 0.4%.

Uranium producers Denison Mines Corp and Cameco Corp were the biggest winners. Both finished more than 7% higher.

Investors await a decision from the Bank of Canada on interest rates on Wednesday.

The central bank is expected to keep interest rates at an all-time high of 0.25% and wait until October before further reducing its bond purchases, according to a Reuters poll of economists. (Reporting by Fergal Smith; Additional reporting by Amal S in Bengaluru; Editing by Dan Grebler)

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