Nov 30 Reuters -- Canada's main stock index fell to a one month low on Tuesday due to concerns that existing vaccines may not hold up against the COVID- 19 Omicron variant, with a decline in crude prices dragging heavyweight oil stocks.
The warnings from U.S. drugmakers Moderna and Regeneron Pharmaceuticals that their COVID 19 vaccines and antibody cocktails could be less effective against the new coronaviruses variant intensified selling in global financial markets.
On Monday, Ottawa Public Health said two more cases of Omicron were detected in the city, bringing Canada's total number of cases to five.
The Toronto Stock Exchange's S&P TSX Composite Index was down 104.45 points, or 0.49%, at 21,044. The movement restrictions to curb the spread of the disease were put in place on the morning of 14: 43 GMT as investors worried about the impact of the movement restrictions.
The day's losses pushed Canada's main stock index into the red for the month, after jumping almost 5% in October.
The energy sector fell by 1.5% as U.S. crude prices fell by 3.1% a barrel, while Brent crude fell 3.4%.
Colin Cieszynski, chief market strategist at SIA Wealth Management said that Canada is getting caught up in a general pullback in equity markets around the world.
After a better than expected fourth-quarter profit for Bank of Nova Scotia, Cieszynski said a positive start to the bank earnings season is possible, and rallying gold prices could support the market as the day progresses.
The materials sector, which includes precious and base metals miners, added 0.6% as gold futures rose 0.7% to $1,793. Silver gained 1.6% as a result of 9 an ounce.
The largest percentage gainers on the TSX were Osisko Mining and MAG Silver Corp, followed by New Gold Inc. Data showing that Canada's economy grew at an annualized rate of 5.4% in the third quarter, topping expectations of a 3% growth. October's GDP was expected to increase by 0.8% over the previous month.
The Canadian GDP was absolutely fantastic. The economy really started to turn around in the summertime when it opened, but as far as markets go, Q 3 is quite a bit back in the rearview mirror, the market is focusing on other things now, according to Cieszynski.
Enbridge Inc. lost 1% as analysts said a Canadian regulators rejected the energy company's plan to sell space long-term on the country's biggest oil pipeline could hit its bottom line.
The TSX posted a new 52 week high and eight new lows.
The total volume of 55.37 million shares was reached across Canadian issues, with eight new 52 week highs and 26 new lows.