The Globe and Mail reports in its Thursday edition that Canada's main stock index fell on Wednesday to its lowest closing level in more than two months as bond yields continued to climb and a drop in gold prices weighed on mining shares. A Reuters dispatch to The Globe says that the S&P 500 eked out a fractional gain after a see-saw session, as investors weighed whether to start bargain-hunting following a sell-off fuelled by elevated Treasury yields and uncertainty about the path ahead for interest rates.
Investors were also attuned to developments in Washington as divisions among U.S. lawmakers put the federal government at risk of a partial shutdown by the weekend.
A possible shutdown has added to worries for stock investors as they grapple with benchmark Treasury yields that have climbed to 16-year highs after the Federal Reserve last week signalled a hawkish long-term path for interest rates.
At the same time, as the S&P 500 has sharply pared its year-to-date gain, some investors are wondering if the market is close to a bottom. The S&P/TSX Composite Index ended down 120.17 points at 19,435.98. Since mid-September, the Toronto Stock Exchange has shed 5.75 per cent, as investors worried about higher borrowing costs.
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