Canada's main stock index fell at the open on Wednesday, led down by gold and other mining stocks as investors waited for the conclusion of the U.S. Federal Reserve's two-day policy meeting.
The S&P/TSX Composite Index began Wednesday off 34.77 points, to 11,753.59, after a gain yesterday of nearly 200 points.
The Canadian dollar was down 0.11 to 98.15 cents U.S.
U.S. congressional leaders failed on Tuesday to break a deadlock on a long-stalled transportation funding measure, and House Republicans now may need to find a new legislative vehicle to carry their plan to approve the controversial TransCanada's Keystone XL oil pipeline
ON BAYSTREET
The TSX Venture Exchange stepped back 7.66 points to 1,256.72 The Nasdaq Canada index slid 3.08 points to 376.62
All but three of the 14 Toronto subgroups began the day negative. Gold gave back 1.8%, while materials regressed 1.5% and the metals and mining group demurred 1.2%.
The three gainers proved to be consumer staples, up 0.5%. real-estate, inching up 0.2%, and telecoms, taking on 0.1%.
ON WALLSTREET
U.S. stocks edged lower at Wednesday's open, as investors hoped the Federal Reserve would announce action to stimulate the economy when it wraps up its two-day meeting.
News that Greece has formed a coalition government was a step in the right direction but the country still has a tough road ahead.
The Dow Jones Industrials sifted off 14.57 points to start the day at 12,822.76
The S&P 500 fell 1.92 points, at 1,356.06. The Nasdaq Composite Index docked one point to 2,928.76
Shares of Dow component Procter & Gamble fell in early trading as the maker of consumer products cut its sales and earnings guidance for the current quarter and the full year.
Shares of Adobe Systems dropped after the software maker lowered its guidance after Tuesday's close, citing "a weaker demand forecast in Europe."
La-Z-Boy 's stock opened lower after the company beat expectations in releasing its quarterly earnings.
Jabil Circuit shares got a boost after the contract electronics manufacturer reported improved earnings in line with forecasts.
Greece has been a thorn in investors' sides for months, with fears about the country leaving the euro-zone and the ripple effect on other sovereign nations sending global financial markets on a roller coaster ride.
But investors remain on edge ahead of the Fed's policy statement shortly after noon. There's been growing hope that Fed's Open Market Committee will announce plans to continue its so-called Operation Twist bond buying program, or some other type of stimulus at the close of its two-day policy meeting.
While such an announcement seemed unlikely a few months ago, the bleak recent jobs report in the United States, combined with weaker economic growth have led observers to conclude that some type of Fed action is imminent. A move would likely provide a boost to U.S. stocks, at least in the short term.
The FMOC is due to release a statement at 12:30 p.m. ET, and Fed chair Ben Bernanke will hold a news conference at 2:15 p.m. ET.
Economically speaking, the U.S. Mortgage Bankers Association Mortgage Index and data on crude inventories for the week of June 16 will be released Wednesday.
The price on the benchmark 10-year U.S. Treasury lost more ground, raising yields to 1.66% from Tuesday’s 1.62%. Treasury prices and yields move in opposite directions.
The price of a barrel of oil backslid 40 cents to $83.63 U.S.
Gold futures for August delivery dropped $15.60 to $1,608.20 U.S. an ounce.
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