TORONTO — Canada's main stock index was down more than one per cent Friday with broad-based losses led by financial, telecom and base metal stocks, while U.S. markets also fell to close the week.In New York, the Dow Jones industrial average was down 286.89 points at 33,127.28.The S&P 500 index was down 53.84 points at 4,224.16, while the Nasdaq composite was down 202.37 points at 12,983.81.
Yields on the 10-year Treasury briefly touched five per cent late Thursday for the first time since 2007 and continued to hang near five per cent on Friday.“The bond market has really been leading the stock market around.” “When you listen to the company's talk now, and the numbers come out, you know, in a slower economy with higher interest rates, we're not going to see a 10 or 12 per cent gain or profit,” he said.As well, the high yields in bonds have many investors seeking the less risky investments, said Zechner.
The Bank of Canada will announce its rate decision next week, and these latest reports only bolstered expectations of a pause, said Zechner.The Canadian dollar traded for 73.02 cents US compared with 72.91 cents US on Thursday.