Canada’s main stock index lost close to 300 points Thursday, with energy and mining stocks bearing the brunt of the impact as investors continue to worry about the possibility of a recession.
The S&P/TSX composite index closed down 286.92 points at 18,717.12, just one day after Statistics Canada revealed that Canada’s annual inflation rate in May was 7.7 per cent, the largest monthly increase in the cost of living since January 1983.
The inflation data was the latest in a series of recent signs that have investors spooked about the chance of rising interest rates triggering a recession, said Allan Small, senior investment adviser at IA Private Wealth.
“There’s obviously the risk that the Bank of Canada will continue to raise interest rates and stay aggressive,” Small said.
“Overall, this (soaring inflation) puts the chance of a recession higher, when you raise interest rates to the point where…
