Equities in Canada’s largest market experienced a brisk round of profit taking Wednesday, particularly in resource stocks.
The S&P/TSX Composite Index plummeted 209.62 points, or 1.4%, to close Wednesday at 15,170.13
The Canadian dollar gained 0.07 cents to 75.61 cents U.S.
Energy stocks took the brunt of the selling, with Crescent Point Energy battered 72 cents, or 6.1%, to $11.19, while Canadian Natural Resources lost $1.92, or 4.9%, to $37.34.
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 also took it on the chin, as Kinross Gold Corp dropped 14 cents, or 2.5%, to $5.49, while Iamgold Corp slumped 53 cents, or 6.4% to $6.65.
Among materials stocks, First Quantum Mining slouched 49 cents, or 2.5%, to $10.94, while First Majestic Silver lost much of its shine, 57 cents, or 5.1%, to $10.57.
Consumer discretionary stocks found a way upward Wednesday, primarily Restaurant Brands, advancing $2.42, or 3.2%, to $78.38, while Shaw Communications gained 77 cents, or 2.6%, to $30.19.
In the utilities sector, Fortis Inc. tacked on 18 cents to $45.42.
ON BAYSTREET
The TSX Venture Exchange collapsed 6.24 points to 779.30
All but two of the 12 TSX subgroups were lower on the day, as energy moved earthward 3.8%, gold dulled 3.1%, and materials were weaker 2.9%
The two gainers were consumer discretionaries, up 0.4%, and utilities, eking up 0.03%.
ON WALLSTREET
U.S. equities closed mixed on Wednesday after the Federal Reserve raised interest rates for the second time this year.
The Dow Jones Industrials came out of the mire to gain 46.09 points, to a new all-time high close of 21,374.56, with Home Depot leading advancers and Chevron lagging.
The S&P 500 docked 2.43 points to 2,437.92, as energy and materials all fell more than 1%. Energy was dragged lower by falling crude prices, which were pressured by a smaller-than-expected drawdown in U.S. oil inventories.
The NASDAQ lost 25.48 points to 6,194.89.
The Fed raised rates by 25 basis points, as was widely expected, and kept is economic projections largely unchanged. The central bank noted that household spending had "picked up in recent months," an upgrade from the May statement.
The Fed also provided more details on how it plans to reduce its massive $4.5-trillion balance sheet.
However, the Fed now believes inflation will fall well short of its target this year. The statement noted that inflation in the next 12 months "is expected to remain somewhat below 2% in the near term" but to stabilize.
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 2.13% from Tuesday’s 2.21%. Treasury prices and yields move in opposite directions.
Oil prices dumped $1.74 to $44.72 U.S. a barrel
Gold prices staggered $7.30 at $1,261.30 U.S. an ounce.
