Canada's main stock index dipped at the open on Wednesday, hurt by a drop in energy shares as oil prices extended their decline after Saudi Arabia said it would quickly restore full production following last weekend's attacks on its facilities.
The S&P/TSX Composite dropped 15.64 points from Tuesday’s all-time closing high, to begin trading Wednesday at 16,819.11
The Canadian dollar docked 0.07 cents at 75.42 cents U.S.
The Minnesota Supreme Court declined on Tuesday to hear environmental and tribal challenges to Enbridge Inc's Line 3 oil pipeline, a decision that removes one potential obstacle for the delayed project.
Enbridge shares gained 29 cents to $46.99.
TD Securities cut the price target on Horizon North Logistics to $1.40 from $1.60. Horizon shares doffed a penny to $1.13.
Cowen and Company cut the price target on Canadian Pacific Railway to $257 from $258. CP backtracked $2.13 to $305.90.
CIBC raised the price target on Pretium Resources to $18 from $15.50. Pretium shares lost 16 cents, or 1%, to $15.26.
On the economic front, Statistics Canada’s consumer price index rose 1.9% on a year-over-year basis in August, following a 2.0% increase in July. On a seasonally adjusted monthly basis, inflation was unchanged last month.
ON BAYSTREET
The TSX Venture Exchange regrouped 2.01 points to 588.91
Eight of the 12 Toronto subgroups went south, as gold retreated 0.8%, while materials and industrials each lost 0.6%.
The four gainers were led by health-care, picking up 0.7%, while utilities and financials each nosed up 0.1%.
ON WALLSTREET
Stocks opened slightly lower on Wednesday as a key policy decision from the Federal Reserve loomed.
The Dow Jones Industrials removed 59.35 points to open for business at 27,051.45
The S&P 500 subtracted 8.55 points to 2,997.15.
The NASDAQ Composite dropped 21.79 points to 8,164.23.
FedEx slashed its fiscal 2020 earnings guidance. The company also posted weaker-than-expected quarterly results, citing “a weakening global macro environment driven by increasing trade tensions.” FedEx shares dropped 13%.
The Fed is expected to cut rates by 25 basis points. This would be the bank’s second rate cut in a decade, after the central bank decided to lower the Fed Funds Rate to a range of 2.0%-2.25% in July. Chairman Jerome Powell will address the media on Wednesday at 2:30 p.m. ET.
Prices for the benchmark 10-year U.S. Treasury moved up, lowering yields to 1.77% from Tuesday’s 1.81%. Treasury prices and yields move in opposite directions
Oil prices deducted 84 cents to $58.50 U.S. a barrel.
Gold prices gained 70 cents to $1,514.10 U.S. an ounce.
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