Stock markets in Canada closed down on Wednesday, Canada’s main stock index, the S&P/TSX Composite Index, down 0.5% at 16,614.5 points.
The financials sector slipped 0.9% after the Bank of Canada held interest rates steady, led by drops from Royal Bank of Canada, which dropped 2.2% and Manulife Financial, down 1.2%. Energy stocks also detracted.
The TSX Venture Exchange nudged down on Tuesday, down 0.04% to close at 608.2 points.
The Canadian Securities Exchange dropped 1% at 930.9 points.
1:30pm: Canada's major benchmarks mixed at mid-session as central bank keeps rates on hold
Canada's major benchmarks were mixed at the mid-day point, with the TSX in the red, but the Venture Exchange was higher and the CSE was also up.
It comes as Canda's central bank, as expected, left interest rates unchanged.
It repeated its overnight rate at 1.75%. The Bank Rate was correspondingly put at 2% and the deposit rate is 1.5%.
The S&P/TSX Composite Index is down nearly 73 points at the time of writing at 16,597, while the Venture Exchange is ahead by around just a point at 609. The CSE is up 3.45 points at 934.
The largest percentage gainer on the TSX was Village Farm International (TSE:VFF), which added almost 12% to $16.59.
On Monday, the firm announced that its 50%-owned joint venture for large-scale, low-cost, high-quality cannabis production had completed, on schedule, the planting of Quadrants 1 and 4 of its 1.1 million square foot Delta 3 greenhouse operation in British Columbia.
10:19am: Bank of Canada leaves interest rates unchanged as Bay Street edges downward on Wednesday
Canadian markets opened lower Wednesday morning after a day that saw the Toronto Stock Exchange hit a new all-time high.
In a statement on Wednesday morning, the Bank of Canada left the interest rate unchanged at 1.75%.
Canadian economic growth during the first half of 2019 is now expected to be slower than was anticipated in January, the Bank said, citing oil price declines and a backlog in exporting crude oil as key reasons why investment has curbed in the energy sector.
“Investment and exports outside the energy sector, meanwhile, have been negatively affected by trade policy uncertainty and the global slowdown,” the statement added. Weaker-than-anticipated housing and consumption also contributed to slower growth.
The TSX lost around 0.5% in the morning to sit around 16,593. Financial stocks, which comprise a large portion of the big board’s overall value, were down around 0.8%.
Metals and mining stocks also lost around 1.3% despite metal prices inching higher.
The TSX Venture Exchange was also down in the morning to 608 points, while the Canadian Securities Exchange lost a few points to sit at 927.
On the TSX, early movers included Titan Medical Inc (TSE:TMD), up over 7%, and Village Farms International Inc (TSE:VFF), which moved 6% to the upside.
Quarterhill Inc (TSE:QTRH) and Lundin Mining Corporation (TSE:LUN) led the early losses, though only by a modest 3% loss in share price.
Oil prices were trading at US$66.27 for West Texas Intermediate and C$55.90 for Western Canadian Select.
Gold moved marginally higher but continued to sit around US$1,271.
The Canadian dollar was off 0.1% at US$0.7237.
Global markets: Wall Street sluggish at the open after Tuesday's record highs
Stocks were relatively flat at the open Wednesday a day after the Nasdaq and S&P 500 hit all-time closing highs.
The major indices all traded slightly below the flatline after another morning of the earnings season. Caterpillar Inc (NYSE:CAT) was the biggest laggard among the blue chips, while Sirius XM (NASDAQ:SIRI) was a stumbling block for the Nasdaq after each company posted quarterly results before the bell.
Investors are looking ahead for signals from the tech sector as Facebook (NASDAQ:FB) and Microsoft (NASDAQ:MSFT) each report after the close.
So far, almost 130 S&P 500 companies have reported first quarter results, and 78% of them beat their expectations, according to data from Refinitiv.
The Dow slipped 0.2% or 46 points, to 26,610.2. The Nasdaq decreased 0.1% to 8,110.1, and the S&P 500 dropped 0.1% to 2,930.3.
At the small-cap level, the Russell 2000 ticked up 1 point to 1,586.4, and the S&P Smallcap 600 was flattish at 971.
In Europe, markets were hit even harder. The London FTSE fell back from its six-month high yesterday, losing 0.8% to 7,462.3. The French CAC shrank 0.6% to 5,558.8, and the German DAX advanced 0.4% to 12,282.8.
Contact Angela at angela@proactiveinvestors.com
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