Canada's main stock index again headed south by the end of Wednesday’s session, as initial optimism over a drop in the domestic annual inflation rate seemed to fizzle in the afternoon.
The S&P/TSX Composite Index shook off earlier gains, and dropped sharply, losing 152.83 points, or 1.1%, to end Wednesday at 14,264.06
The Canadian dollar fell 0.21 cents to 74.09 U.S.
Gold miners including Eldorado Gold turned lower two cents, or 2.3%, to 84 cents, and Barrick Gold dropped $1.30, or 7%, to $17.41
Health-care stocks were the worse for wear late Wednesday, as Canopy Growth dwindled $1.68, or 4.3%, to $37.81, while Bausch Health Companies dipped $1.55, or 5.5%, to $26.61.
Among materials, Agnico Eagle Minerals stumbled $2.66, or 4.9%, to $51.69, while First Quantum Minerals lost 85 cents, or 7.7%, to $10.20.
On the economic slate, Statistics Canada reported that the Consumer Price Index rose 1.7% on a year-over-year basis in November, following a 2.4% increase in October. Monthly CPI declined 0.2% in November.
ON BAYSTREET
The TSX Venture Exchange withered 1.28 points to 541.87
All 12 TSX subgroups were in the red by day’s end, as gold collapsed 5.1%, health-care was off 3.9%, and materials slid 3.5%.
ON WALLSTREET
U.S. stocks sank Wednesday in a wild session after the Federal Reserve raised its benchmark overnight lending rate for the fourth time this year.
The Dow Jones Industrials reversed sharply and docked 351.98 points, or 1.5%, to 23,323.66, its lowest level so far this year, erasing a 380-point gain that came prior to the Fed decision.
The S&P 500 lost 39.2 points, or 1.5%, to 2,506.96, as technology and banks stocks rolled over.
The NASDAQ dumped 147.08 points, or 2.2%, to 6,636.83, its own 2018 closing low with shares of Apple losing more than 3%.
The Dow and S&P 500, which are both in corrections, are on track for their worst December performance since the Great Depression in 1931, down more than 8%and 9%, respectively, this month. The S&P 500 is now in the red for 2018 by 6.3%.
Equities across a range of sectors plunged following the Fed’s announcement. Consumer companies including Target, Amazon, Newell Brands and Nordstrom all fell more than 3%. Banks including Citigroup and Wells Fargo each lost more than 1.5%.
Aircraft manufacturer Boeing, which had led the Dow higher earlier in the session, dropped 2.5%. Industrial conglomerate 3M shed 2.3% while United States Steel Corp lost 6%.
The uptick in U.S. equities came despite a downturn in FedEx stock, which slid more than 12% after CEO Richard Smith blamed "bad political choices" for weakness in its overseas business.
FedEx lowered its 2019 earnings guidance and reported weakness in its international business, putting the stock on pace for its worst day on Wall Street in more than a decade. The stock is also on track for its worst month since 1978.
The Fed decided to hike its benchmark overnight lending rate by one-quarter point on Wednesday to a target range between 2.25% to 2.5%. The Fed did, however, trim its 2019 outlook for rate hikes to just two increases from three previously.
Prices for the benchmark for the 10-year U.S. Treasury thundered ahead, lowering yields to 2.77% from Tuesday’s 2.83%. Treasury prices and yields move in opposite directions
Oil prices picked up $1.72 to $47.96 U.S. a barrel.
Gold prices subtracted $8.20 to $1,245.40 U.S. an ounce.
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