CANADA-TSX STOCKS Tumble as Commodity Stocks Drop, Canada Goose Tumbles

By Shashwat Chauhan

February 2 (Reuters)Canada’s main stock index fell on Thursday as losses in commodity-linked stocks offset gains in technology, while shares of Canada Goose tumbled after the luxury goods maker cut its forecast for all year.

At 10:12 am ET (1512 GMT), the S&P/TSX Composite Index of the Toronto Stock Exchange .GSPTSE it was down 42.99 points, or 0.21%, at 20,708.06.

Canada Goose Holdings Inc GOOS.TO hit the bottom of the TSX, falling 14.2% after it cut Its full-year revenue and profit forecasts after COVID-19 disruptions hit sales of its luxury parkas and jackets in China during the third quarter.

Commodity-linked stocks were a drag on the main index, with energy .SPOTTING losing 1.5% and materials .GSPTTMT shedding 2.0% like gold XAU = prices fell more than 1% and oil prices lost ground. OGOL/

Driving risk sentiment was a smaller rate hike by the US Federal Reserve on Wednesday and dovish signals from Chairman Jerome Powell, who saying that the “disinflationary” process was under way.

“There are all these factors that are lining up for a recession, and yet the Fed is still a bit aggressive on inflation and that’s where markets have historically spooked,” said Nicolas Katsiyianis, head of research at Eight Capital in Toronto. .

“Now they feel like he (Powell) wasn’t as aggressive on the call, so maybe he’s backing off a bit.”

(Reporting by Shashwat Chauhan in Bengaluru; Editing by Krishna Chandra Eluri and Shailesh Kuber)

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