Stocks in Canada’s largest market headed sharply downward Wednesday afternoon, as oil prices declined over renewed concerns about the effectiveness of production cuts led by the Organization of the Petroleum Exporting Countries.
The S&P/TSX Composite Index had plunged 93.74 points by noon Wednesday to 15,370.82
The Canadian dollar gained 0.28 cents to 74.08 cents U.S.
Energy stocks that suffered included Encana Corp., falling 83 cents, or 6.3%, to $12.42, while Cenovus Energy dropped 59 cents, or 5.1%, to $11.00.
Telecoms also had a rough morning, as TELUS fell $1.18, or 2.6%, to $44.79, while BCE shares doffed 57 cents to $60.46.
In the consumer staples field, Restaurant Brands lost 34 cents in price to $80.26 a share, while Metro shed 45 cents, or 1%, to $45.13.
On the economic ledger, Statistics Canada reported Wednesday that municipalities issued $7.1 billion worth of building permits in April, down 0.2% from March, for the third straight monthly decrease.
Lower construction intentions for single-family dwellings were mainly responsible for the national decrease. The value of building permits declined in four provinces in April, led by Ontario and Alberta.
ON BAYSTREET
The TSX Venture Exchange gave back 4.82 points to 795.76
All but one of the 12 TSX subgroups stayed in the red by noon ET, as energy staggered 2.5%, telecoms were down 1.4%, and consumer staples backpedaled 0.7%
The lone gainer was in real-estate, picking up 0.3%.
ON WALLSTREET
U.S. equities traded mixed on Wednesday as investors awaited three key events slated for Thursday, while oil prices dropped.
The Dow Jones Industrials kept its buoyancy, up 10.24 points to 21,146.47, with Goldman Sachs contributing the most gains
The S&P 500 gained 0.9 points to 2,430.23, as energy dropped more than 1% on the back of a sharp fall in oil prices.
The NASDAQ strengthened 15.95 points to 6,291.01
Firms reporting earnings Wednesday include ABM Industries and Greif Inc.
Former Federal Bureau of Investigation Director James Comey is slated to testify in front of the Senate Intelligence Committee, marking the first time he publicly speaks since being fired from his post.
President Donald Trump abruptly fired Comey last month. While Comey was FBI chief, Trump allegedly asked Comey to ease off on a probe into Michael Flynn, the former national security advisor. The Washington Post reported Tuesday night that Trump asked his top intelligence official to get Comey to back off on Flynn's investigation.
The stock market has mostly traded sideways this week as investors hold off on making big bets ahead of Comey's testimony.
Elsewhere, the European Central Bank is set to release its latest monetary policy decision on Thursday. While interest rates are expected to remain unchanged, the central bank may cut its inflation forecasts.
Prices for the benchmark 10-year Treasury note tailed off, raising yields to 2.17% from Tuesday’s 2.14%. Treasury prices and yields move in opposite directions.
Oil prices lost $2.01 to $46.18 U.S. a barrel
Gold prices slid $3.60 at $1,293.90 U.S. an ounce.
