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TSX falls off record high as oil slump hits energy stocks

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Toronto stock index fell from record highs on Monday, with the heavyweight energy sector leading losses as rising COVID-19 cases stoked concerns over crude demand, driving oil prices 4% lower.

* At 9:40 a.m. ET (13:40 GMT), the Toronto Stock Exchange’s S&P/TSX composite index was down 94.4 points, or 0.46%, at 20,381.02.

* The energy sector dropped 1.9% as oil prices plummeted on concerns that rising COVID-19 cases, particularly in major importer China, could lead to new restrictions and dent fuel demand. [O/R]

* The materials sector, which includes precious and base metals miners and fertilizer companies, lost 1% as concerns over Chinese demand hit base metal prices, while a rising dollar hurt precious metals. [GOL/] [MET/L]

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* Defensive sectors such as real estate and consumer staples were among the few gainers.

* The financials sector slipped 0.3%. The industrials sector fell 0.1%.

* On the TSX, 50 issues advanced, while 178 issues declined in a 3.56-to-1 ratio favoring losers, with 19.35 million shares traded.

* The largest percentage gainer on the TSX was WPT Industrial Real Estate Investment Trust <WIR_u.TO>, which jumped 15.1% after private equity firm Blackstone agreed to buy the company for $1.86 billion.

* Westport Fuel <WPRT.TO> fell 7.0%, the most on the TSX, while the second biggest decliner was Lightspeed Pos Inc <LSPD.TO>, down 6.3%.

* The most heavily traded shares by volume were Enbridge Inc <ENB.TO>, Manulife Financial <MFC.TO> and Bombardier Inc <BBDb.TO>.

* The TSX posted four new 52-week highs and three new lows.

* Across Canadian issues, there were 48 new 52-week highs and 11 new lows, with total volume of 34.68 million shares.

(Reporting by Ambar Warrick; editing by Subhranshu Sahu and Vinay Dwivedi)

Economy

China Economy Braces for Further Slump as Covid, Protests Spread – Bloomberg

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China Economy Braces for Further Slump as Covid, Protests Spread  Bloomberg



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Mexican president says economy should grow by at least 3.5% until 2024 – SaltWire NS

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MEXICO CITY (Reuters) -Mexico’s economy should grow 3.5% over 2022, 2023 and 2024, President Andres Manuel Lopez Obrador said on Sunday in a speech to a massive crowd gathered in the country’s capital to mark his fourth year in office.

An economic slowdown, largely in the industrial sector, weighed on to Mexico’s Gross Domestic Product (GDP) growth, keeping it slightly below estimates in the third quarter this year.

Analysts have predicted GDP will grow by 2.7% this year, while the International Monetary Fund expects growth to slow to 1.2% next year.

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“The economy will increase by 3.5% this year and, I estimate, by that same percentage at least for 2023 and 2024,” he said.

Lopez Obrador has recently said we would like to see the central bank balance fighting inflation with the need to protect economic growth.

(Reporting by Diego Ore Oviedo; Editing by Daniel Wallis and David Gregorio)

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India's economy likely slowed to annual 6.2% in July-Sept – Financial Post

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BENGALURU — The Indian economy likely returned to a more normal 6.2% annual growth rate in July-September after double-digit expansion in the previous quarter, but weaker exports and investment will curb future activity, a Reuters poll showed.

In April-June, Asia’s third-largest economy showed explosive growth of 13.5% from a year earlier thanks mainly to the corresponding period in 2021 having been depressed by pandemic-control restrictions.

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But with the Reserve Bank of India (RBI) now raising interest rates to tamp inflation running above its target range of 2% to 6% target, the economy is set to slow further.

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The 6.2% annual growth forecast for latest quarter in a Nov. 22-28 Reuters poll of 43 economists was a tad lower than the RBI’s 6.3% view. Forecasts ranged between 3.7% and 6.5%.

“The exceptionally favorable base of the April-June ’22 quarter is behind us, which will result in a normalization of the year-on-year real GDP growth rate from July-Sept ’22 onward and also make it easier to gauge the true underlying economic momentum,” said Kaushik Das, India and South Asia chief economist at Deutsche Bank.

Although business surveys indicated weakening economic activity in most major economies, where central banks are responding to soaring inflation with higher interest rates, business sentiment has remained relatively strong in India.

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Still, industrial production increased at an annual pace of only 1.5% on average last quarter, its weakest in two years, pointing towards a significant slowdown in manufacturing activity, a key driver of growth.

“GDP is expected to increase sequentially, led by continued recovery in services. Mining and manufacturing are expected to be a drag. On the demand side, lower global growth hit exports in Q2 (July-September),” said Sakshi Gupta, principal India economist at HDFC Bank, adding there were signs that consumption was uneven.

The finance ministry said on Nov. 24 a global slowdown might dampen the country’s export businesses outlook. Meanwhile, the RBI raised its key policy interest rate to 5.9% from 4.0% in May and is widely expected to add another 60 basis points by the end of March.

“Between December and February, the headwinds to growth may become more evident,” said Deutsche Bank’s Das. (Reporting by Indradip Ghosh; Polling by Vijayalakshmi Srinivasan, Veronica Khongwir and Maneesh Kumar; Editing by Hari Kishan, Ross Finley)

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