By Promit Mukherjee and Nikhil Sharma
(Reuters) -Canada’s main stock index posted a sharp fall on Friday, ending this week’s rally as fears that the country might enter a recession overshadowed lackluster U.S. and Canada jobs data that advanced and firmed rate cut hopes.
The Toronto Stock Exchange’s S&P/TSX composite index ended down 0.77% to 22,072.21 points, and closed at almost the same level seen a month ago.
The index had edged up to a near five-week high on Thursday driven by resource companies, pretty much the same basket of stocks that drove the index down in the day.
“The market might be interpreting that as the chances of a recession are higher here in Canada, the chances of a soft landing are lower,” said Josh Sheluk, chief investment officer at Verecan Capital Management.
Usually resources companies – mining and materials – react positively to rate cut bets, which gained traction after data from U.S. showed that unemployment…
