Markets in Canada’s largest centre moved lower by midday Wednesday as energy stocks fell with a drop in oil prices and loyalty program company Aimia Inc. plunged after suspending its dividend payments.
The S&P/TSX Composite Index plummeted 117.38 points to greet noon at 15,262.37
The Canadian dollar climbed 0.19 cents to 75.73 cents U.S.
Aimia slumped 6.9% to $1.76 after canceling those payouts with immediate effect and announcing the resignation of three directors.
Air Canada said in May that it would launch its own loyalty program in 2020, replacing Aeroplan, which Aimia owns and operates.
The energy group retreated as oil prices fell, after reports showed global supply was rising and U.S. crude inventories were still increasing.
Suncor Energy Inc fell 1.4% to $40.30, and Canadian Natural Resources lost 1.6% to $38.36.
Canada’s main oil lobby group says Canadian crude output will grow by a third to 5.1 million barrels per day by 2030, raising predictions for the first time in four years.
Gold miners were among the biggest gainers, as Kinross Gold Corp advanced 2.8% to $5.79, while Iamgold Corp rose 3.8% to $7.45.
Restaurant Brands International Inc advanced 1.5% to $77.13. Oppenheimer raised the owner of Burger King and Tim Hortons to outperform from market perform
ON BAYSTREET
The TSX Venture Exchange recovered 1.54 points to 787.08
Eight of the 12 TSX subgroups were lower heading into noon hour, with energy backtracking 3.1%, while materials dropped 0.8%, and financials faded 0.7%.
The four gainers were led by consumer discretionary, telecom and utility stocks, each up 0.3%.
ON WALLSTREET
U.S. equities traded mixed on Wednesday as investors braced themselves for the latest monetary policy announcement from the Federal Reserve.
The Dow Jones Industrials subtracted 2.38 points at 21,326.09, with Chevron leading decliners and Travelers the top advancer.
The S&P 500 docked 3.64 points to 2,436.71, with energy sliding 2% to lead decliners.
The NASDAQ inched up 1.65 points to 6,222.02.
The Fed is largely expected to raise interest rates by 25 basis points, but investors will likely key on what the central bank says about U.S. inflationary pressures.
The Fed's preferred inflation measure, the PCE deflator, came in at a weaker 1.5%, well below the Fed's 2% inflation target.
The latest consumer price index reading, released Wednesday, fell 0.1%. Economists expected CPI to rise 0.2%.
Prices for the benchmark 10-year Treasury note were sharply higher, lowering yields to 2.11% from Tuesday’s 2.21%. Treasury prices and yields move in opposite directions.
Oil prices dumped $1.79 to $44.67 U.S. a barrel
Gold prices leaped $10.60 at $1,279.20 U.S. an ounce.
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