Canada's main stock index opened downward on Wednesday as investors awaited a pivotal announcement from the International Energy Agency on a potential release of crude oil reserves, while assessing the latest U.S. inflation data.
The TSX lopped off 215.83 points to begin Wednesday at 33,054.82.
International Energy Agency's decision on plans to release crude reserves that could offset potential supply shocks. Two sources told Reuters that the oil release could total 400 million barrels.
Amid the recent swings in oil prices, Canadian energy stocks have emerged the strongest performers so far this year, while information technology has remained a laggard.
Focus would be on shares of goeasy, which sank more than 56% on Tuesday after projecting an incremental charge-off of $178 million against its $5.5-billion-loan book in the fourth quarter. At least two brokerages downgraded their rating on the stock, while several cut their price targets.
goeasy dropped another $7.03, or 14.1%, to $42.69.
ON BAYSTREET
The TSX Venture Exchange decreased 13.69 points to 1,075.85.
All but one of the 12 TSX subgroups were lower in the first hour, with gold fading 3.8%, materials dipping 2.8%, and telecoms off 1.3%.
Only energy made it upward, and 1.2% at that.
The dollar sank 0.03 cents to 73.59 cents U.S.
ON WALLSTREET
The Dow Jones Industrial Average fell slightly on Wednesday as investors continued to eye developments in the U.S.-Iran war and oil prices as well as weighed key consumer inflation data.
The 30-stock index withered 202.51 points to open Wednesday at 47,504.
The S&P 500 index gained 10.06 points to 6,791.54.
The NASDAQ took on 109.94 points to 22,806.94.
The United Kingdom Maritime Trade Operations also said Wednesday that three cargo ships off Iran’s coast, one of which was in the Strait, have been struck by projectiles.
This comes just days after President Donald Trump said earlier this week that the war will end “very soon.”
The consumer price index increased 2.4% on a year-over-year basis in February. That was in line with what economists polled by Dow Jones anticipated. The report comes after signs of a weakening labor market have grown in recent months.
Oracle shares were a bright spot Wednesday, jumping 13% after the software vendor’s earnings and revenue for the fiscal third quarter exceeded analysts’ expectations. The company also raised its fiscal 2027 revenue forecast.
Prices for the 10-year Treasury lost ground, raising yields to 4.19% from Tuesday’s 4.15%. Treasury prices and yields move in opposite directions.
Oil prices recovered $1.59 to $85.64 U.S. a barrel.
Gold prices dumped $51.90 to $5,190.20 U.S. an ounce.
