Canada: TSX Drops as Elevated Yields Pressure Stocks.

The S&P/TSX Composite Index fell 1.7% to close at 35,042 on Wednesday as concerns over high bond yields returned to the forefront, threatening earnings projections for credit-sensitive sectors. Oil prices softened from earlier gains, easing inflation concerns. Still, tight credit conditions persisted, and US Fed FOMC members agreed that higher rates are needed to tame inflation, according to the latest meeting minutes. Canadian sovereign bonds fell, further pressuring credit-sensitive stocks. RBC shed 2.3%, while TD Bank lost 3.3%. Markets are pricing in at least one 25-basis-point Bank of Canada rate hike by year-end. Meanwhile, gold prices declined, weighing on miners, with Agnico Eagle down 2.8% and Barrick losing 3.6%. Energy producers also erased earlier gains amid the oil pullback, with Imperial Oil down 2% and Cenovus losing 1.8%.