Equities in Canada’s largest market found themselves straddling the breakeven point Wednesday, after mighty gains through much of the day, as the Bank of Canada raised rates for the first time in many years.
The S&P/TSX Composite Index dropped way off its highs of the morning, actually moving into the red 5.15 points to end Wednesday at 15,143.99
The Canadian dollar rocketed 1.06 cents to 78.49 cents U.S.
Consumer staples had the best time of it Wednesday, as Alimentation Couche-Tard picked up $2.35, or 3.9%, to $62.50. while Loblaw Companies improved 35 cents to $71.15.
In the tech field, Constellation Software improved 61 cents to $659.36.
Consumer discretionary stocks were on the down side, as Canadian Tire doffed 78 cents a share to $142.80, while Magna International gave back 46 cents to $60.98.
Gold stocks slumbered, as Goldcorp lost four cents to $16.56, while Barrick Gold dropped 34 cents, or 1.7%, to $20.21.
In the materials sector, First Majestic Silver swooned 24 cents, or 2.4%, to $9.84, while Agnico Eagle Mines dropped off the pace 94 cents, or 1.6%, to $56.98.
The Bank of Canada did as expected this morning, raising its trendsetting rate a quarter-point to 0.75%, the first hike in nearly seven years, and perfectly in line with what expert were saying would happen.
ON BAYSTREET
The TSX Venture Exchange gained 8.58 points, or 1.4%, to 758.48
The 12 TSX subgroups were evenly divided between gainers and losers, as consumer staples strengthened 1.3%, while real-estate build 0.7% better, and information technology clicked 0.6% higher.
Among the half-dozen losers, consumer discretionary issues slipped 1%, while gold and materials each slumbered 0.9%.
ON WALLSTREET
U.S. equities rose on Wednesday as investors worked their way through testimony from the top-ranking Federal Reserve official.
The Dow Jones Industrials surged 123.07 points to 21,532.14, and hit a record intraday and closing highs. Shares of DuPont contributed the most gains on the 30-stock index.
The S&P 500 gained 17.72 points to 2,443.25, with real-estate and energy leading advancers
The NASDAQ took on 67.87 points, or 1.1%, to 6,261.17, as shares of PayPal hit a record high.
Fed Chair Janet Yellen said the central bank is likely to start reducing its massive $4.5-trillion portfolio later this year. The Fed bolstered the portfolio, known as the balance sheet, as a way to stimulate the economy during and after the financial crisis.
Yellen delivered her remarks in front of Congress on Wednesday. She also answered questions about monetary policy and the health of the U.S. economy.
Prices for the benchmark 10-year Treasury note dipped Wednesday, lowering yields to 2.33% from Tuesday’s 2.36%. Treasury prices and yields move in opposite directions
Oil prices gained $1.02 to $46.06 U.S. a barrel
Gold prices recovered $3.70 to $1,218.40 U.S. an ounce.
