By Bansari Mayur Camdar

(Reuters) – Canada’s benchmark index lost for the third session in a row on Tuesday as weakening energy and metal prices resulting from rising COVID-19 case in China weighed heavily on commodity stocks.

10:00 AM ET ET (1400 GMT), the Toronto Stock Exchange’s S&P/TSX composite index was down 161.23 points, or 0.76%, at 21,019.55.

Following weakness in commodity price, energy and material sectors saw a 4.4% decline and 1.4% respective fall.

Oil prices dropped by three weeks to their lowest level and prices for industrial metals fell. Daily COVID-19 infection rates in China’s major consumer doubled from one day earlier, to reach a record two-year high. [O/R] [MET/L]

Greg Taylor of Purpose Investments, portfolio manager, said “We’re going through a volatile year”

“TSX definitely has a higher commodity index than other indices. As long as inflation remains a main theme, it should be able to outperform”

Although the Toronto-heavy index is heavy in commodities has seen a 1.1% decline so far this year it has still outperformed its international peers such as the U.S. benchmark, down 11.8%, year-to date. This was due to investors who embraced commodity stocks to shield their portfolios against the effects of rising inflation and supply shortages.

Key consumer price data is expected later this week. Investors also awaiting the U.S. Federal Reserve meeting on Wednesday.

Taylor explained that “there’s likely not to be much volume today because investors are waiting on the Fed’s signals, and see if they get any relief in moving higher in yields or the U.S. dollars.”

The data showed that the home price index rose to an unprecedented high and that housing starts increased by 8.8% in February, compared to the month before.

There are several stocks that can be included in this list. Canadian Pacific Railway Ltd. fell 0.8% on Wednesday after thousands of employees threatened strike. The threat could disrupt the movement of grains, coal and potash in a period of high commodity prices.