Canadian stocks dived to a six-week low Tuesday morning on worries that U.S. Federal Reserve may scale back its aggressive monetary policies, after the Bank of Japan earlier today opted not to extend its stimulus program.
The Bank of Japan refrained from announcing any new steps to contain bond market volatility. Policymakers decided to continue to target an expansion of monetary base at an annual pace of 60 to 70 trillion yen, as announced in April. Meanwhile, the central bank upgraded its view of the economy.
The S&P/TSX Composite Index lost 112.54 points or 0.91 percent to 12,270.12, a day after snapping its six-session losing streak.
Yoga-wear maker lululemon athletica inc. (LLL.TO) dived 16 percent after reporting a marginally higher first quarter net income of $47.3 million or $0.32 per share compared to $46.6 million or $0.32 per share for the year-ago quarter. Analysts expected the company to earn $0.32 per share for the first quarter. Looking forward to the second quarter, the company forecasts net revenue of $340 million to $345 million and earnings of $0.33 to $0.35 per share. Analysts currently expect the company to earn $0.33 per share on revenue of $328.88 million for the second quarter. Additionally, lululemon said that its Chief Executive Officer Christine Day will step down after a five and half year tenure.
Financial stocks were trading weak, with CIBC (CM.TO), TD Bank (TD.TO) and Bank of Montreal (BMO.TO) losing around 1 percent each.
The price of gold was moving lower Tuesday morning after the Bank of Japan opted not to extend its stimulus program, raising speculation that the Federal Reserve may cut back its monetary easing measures in the near future. Gold for August lost $10.10 to $1,375.90 an ounce.
Among gold plays, Agnico-Eagle Mines (AEM.TO). Goldcorp. (G.TO) and Barrick Gold (ABX.TO) were down around 2 percent each.
The price of crude oil was moving lower Tuesday morning amid speculation that U.S. Federal Reserve might scale back its aggressive monetary policies, after the Bank of Japan earlier today opted not to extend its stimulus program. Crude for July shed $1.09 to $94.68 a barrel.
In the oil patch, Trilogy Energy (TET.TO) and Coastal Energy (CEN.TO) shed around 4 percent each.
Energy producer Encana Corp. (ECA.TO) has appointed Doug Suttles as its President & Chief Executive and a director of the company. Suttles, with 30 years of oil and gas leadership experience, has served most recently as Chief Operating Officer of BP Exploration & Production. The stock edged up 0.50 percent.
Commercial real estate owner, operator and investor Brookfield Property Partners, L.P. (BPY_UN.TO) edged up 0.40 percent after announcing the acquisition of EZW Gazeley Ltd from Economic Zones World, part of Dubai World. Pursuant to the acquisition, Brookfield Property Partners will own an approximate 30 percent interest in Gazeley.
Health insurer Cigna Corp. (CI) entered into a ten-year deal with pharmacy benefit manager Catamaran Corp. (CTRX, CCT.TO). Yesterday, shares of Catamaran gained 14 percent in extended trades following the announcement. Today, eh stock was adding another 12 percent.
In economic news from the U.S., the Commerce Department said wholesale inventories edged up by 0.2 percent in April following a revised 0.3 percent increase in March. The modest growth matched economist estimates. Inventories of durable goods increased by 0.2 percent, with a 1.9 percent jump in inventories of motor vehicles and parts offsetting a 1.1 percent drop in inventories of metals and minerals, except petroleum.
Elsewhere, U.K. industrial production registered a slight 0.1 percent increase in April from March, data published by the Office for National Statistics showed. April's increase follows a 0.7 percent rise in March and 0.9 percent growth in February. Economists had forecast nil growth for April.
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Market Analysis
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.