TSX’s winning streak ends after hot U.S. inflation data

Oct 12 (Reuters) – Canada’s main stock index fell on Thursday, giving back some of this week’s rally, as hotter-than-expected U.S. inflation data pushed up long-term borrowing costs.

The Toronto Stock Exchange’s S&P/TSX composite index (.GSPTSE) ended down 163.60 points, or 0.8%, at 19,500.24 after five straight days of gains.

“We saw a couple of days of pullback in bond yields and markets liked it. And the reverse is happening,” said Barry Schwartz, portfolio manager at Baskin Financial Services.

“Yesterday’s PPI (data), today’s CPI number, just too hot, too spicy to call inflation dead yet and to say that things are cooling off.”

Wall Street’s main indexes also fell as bond yields rose and data showed U.S. consumer prices rose more than anticipated in September, clouding the Federal Reserve’s interest rate outlook.

The Canadian 10-year yield was up 11.6 basis points at 4.042%, tracking moves in U.S. Treasuries.

Interest-rate sensitive sectors were among the biggest decliners on the Toronto market. Utilities fell 2.5%, real estate was down 1.5% and heavily-weighted financials ended 0.9% lower.

The materials group, which includes precious and base metals miners and fertilizer companies, lost 1.7% as gold and copper prices fell.

But Barrick Gold Corp (ABX.TO) shares ended up 0.1% after the company said its gold production rose nearly 3% sequentially for the third quarter, helped by higher production at its Cortez mines in Nevada.

The energy sector also gained ground, rising 0.7%, even as oil settled 0.7% lower at $82.91 a barrel after data showed a large build in U.S. crude stockpiles.

Our Standards: The Thomson Reuters Trust Principles.