Equities in Canada’s biggest centre scaled back on Monday, as shares of material companies were boosted by higher gold prices, ahead of this week's U.S. Federal Reserve meeting where investors widely expect an interest rate cut.
The S&P/TSX Composite deducted 33.39 points to open Monday at 16,497.65
The Canadian dollar regained 0.07 cents to 76.01 cents U.S.
Australia's competition regulator on Monday opened consultation on a proposed undertaking by Canada's Nutrien to sell three of its regional stores to address concerns over its takeover bid of rural services firm Ruralco.
Nutrien shares added 17 cents to $67.11.
WestJet Airlines Ltd, which is being acquired by Onex Corp, reported a surprise quarterly profit and better-than-expected revenue on Friday while many airlines have warned of financial hits from the grounding of the Boeing Co 737 MAX jets.
WestJet shares eked up two cents to $30.72, while Onex lost 18 cents to $80.59.
Canaccord Genuity raised price target on Aecon Group to $27.00 from $26.00. Aecon shares faded 59 cents, or 2.7%, to $21.00.
National Bank of Canada cut the price target on Thomson Reuters to $90.00 from $95.00. Thomson shares lost $2.19, or 2.4%, to $90.55.
ON BAYSTREET
The TSX Venture Exchange slipped 4.18 points to 588.71
Seven of the 12 Toronto subgroups shed strength to begin the day, with information technology sagging 1.6%, health-care down 1.4%, and energy sliding 1%.
The five gainers were led by financials, up 0.3%, real-estate, ahead 0.2%, and consumer staples, inching 0.1% into positive country.
ON WALLSTREET
U.S. stocks traded flat Monday as Wall Street tempered its expectations for this week’s trade negotiations between Washington and Beijing and prepared for the latest monetary policy decision from the Federal Reserve.
The Dow Jones Industrials squeezed up 6.42 points first thing Monday to 27,198.87, as gains in UnitedHealth and McDonald’s offset declines in Goldman Sachs and Intel.
The S&P 500 dropped 8.74 points to 3,017.12, as consumer discretionary and communication services stocks weighed on the broad equity index. The NASDAQ fell off 74.46 points to 8,255.75, as Amazon fell 1.3%, Microsoft lost 0.5% and Facebook shed 1.3%.
In corporate news, Pfizer plans to divest its off-patent drug business and marry it with generic-drug maker Mylan. The combined company, which will market Mylan’s EpiPen and Pfizer’s Viagra, will be domiciled in the U.S.
Beyond Meat, the hot meat alternative IPO with a market cap bigger than a quarter of companies in the S&P 500, reports earnings after the bell. In total, 75% of companies have beaten estimates so far and 60% beat revenue expectations.
The Fed will announce its latest decision on whether to adjust interest rates at 2 p.m. ET Wednesday; Chairman Jerome Powell will also address the state of the economy in a press conference at 2:30 p.m. ET later Wednesday.
Despite a healthy economy and an unemployment rate under 4%, investors widely expect the central bank to cut its benchmark lending rate for the first time since 2008 by 25 basis points. The Fed, which seeks to keep inflation around 2%, has had trouble sustaining price growth in recent months despite a healthy economy and low unemployment.
That may hint that the current level of interest rates may be too high even though the benchmark is well below historical norms. Some economists and Fed officials think that rates need to be lowered in the face of decelerating Gross Domestic Product in the U.S. and a gloomier growth outlook overseas as Washington-led trade wars continue.
U.S. and Chinese officials will convene in Shanghai this week in a latest attempt by the globe’s two largest economies to craft a trade deal and end their year-long trade dispute.
Prices for the benchmark 10-year U.S. Treasury gained slightly, weighing yields to 2.06% from Friday’s 2.07%. Treasury prices and yields move in opposite directions.
Oil prices dipped two cents to $56.18 U.S. a barrel.
Gold prices acquired a dime to $1,419.40 U.S. an ounce.
