The Toronto stock market focused on weaker commodities and moved lower in early trading on Wednesday as investors awaited the results of a meeting of the U.S. Federal Reserve set to wrap up in the afternoon.
The S&P/TSX Composite Index approached noon Wednesday off 53.04 points, to 11,735.32, after a gain yesterday of nearly 200 points.
The Canadian dollar was down 0.14 to 98.11 cents U.S.
The expectation is that the Fed will announce it is extending a program of buying long-term bonds to keep rates low, or at least signal a readiness to act should the economy sputter.
Those predictions were enough to move markets higher on Tuesday, though attention has shifted on the TSX to the decline of key commodities prices.
In individual company news, Alimentation Couche-Tard Inc. has succeeded in its protracted, $2.7-billion takeover bid for Norway’s Statoil Fuel & Retail ASA.
The company said almost 91% of Statoil Retail’s shares have now been tendered to the offer, which is above the 90% threshold at which Couche-Tard has said it would initiate a compulsory acquisition of the rest of the shares in the company.
Couche-Tard shares rose $1.74 to $44.75.
ON BAYSTREET
The TSX Venture Exchange stepped back 11.16 points to 1,253.22 The Nasdaq Canada index slid 3.04 points to 376.66
In all, eight of the 14 Toronto subgroups stayed negative by noon. Information technology dumped 1.9%, while metals and mining fell 1.6% and gold trailed off 1.5%.
The half-dozen gainers were led by consumer staples, up 0.8%, telecoms, ahead 0.5%, and real-estate, gaining 0.3%.
ON WALLSTREET
U.S. stocks were choppy early Wednesday, as investors awaited the Federal Reserve's announcement as to whether the central bank will announce any new stimulus action when it wraps up its two-day meeting.
The Dow Jones Industrials sifted off 30.84 points to break for lunch at 12,806.49
The S&P 500 fell 4.89 points, at 1,353.09. The Nasdaq Composite Index docked 7.64 points to 2,922.12
Shares of Dow component Procter & Gamble continued to fall 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 was 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, oil prices slid after the U.S. Energy Information Administration's weekly crude inventories report showed an increase of 2.9 million barrels in the week ended June 16. Economists had expected a decline.
Elsewhere, 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 1.67% from Tuesday’s 1.62%. Treasury prices and yields move in opposite directions.
The price of a barrel of oil slid $1.63 cents to $82.40 U.S.
Gold futures for August delivery dropped $20.50 to $1,602.70 U.S. an ounce.
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