Equities in Toronto opened lower on Wednesday, tracking Wall Street, as U.S. Federal Reserve Chairman Jerome Powell warned of a prolonged recession due to the coronavirus outbreak.
The S&P/TSX Composite Index began Wednesday bowed 94.41 points at 14,786.75.
The Canadian dollar eked higher 0.08 cents to 71.16 cents U.S.
RBC raised the rating on Aimia Inc. to sector perform from outperform. Aimia shares jumped 72 cents, or 30.8%, to $3.06.
Credit Suisse cut the target price on Suncor Energy to $30.00 from $33.00. Suncor shares ducked 74 cents, or 3.1%, to $22.96.
CIBC raised the target price on TMX Group to $140.00 from $12.00. The company which runs the Toronto Stock Exchange saw its shares fade in price $1.92, or 1.5%, to $130.41.
The Globe and Mail reported Wednesday Canada-U.S. border is expected to stay closed to non-essential travel until June 21.
Norway's $1-trillion sovereign fund said on Wednesday it had excluded four Canadian oil and gas companies from its portfolio for producing excessive greenhouse gas emissions, its first use of that reason to blacklist firms.
ON BAYSTREET
The TSX Venture Exchange heightened 5.71 points, or 1.1%, to 506.42
Eight of the 12 TSX were lower in the first hour, with health-care and energy each down 1.7%, and consumer discretionary stocks off 1.4%.
The four gainers were led by gold, up 1.8%, materials, up 1.1%, and information technology, eking up 0.1%.
ON WALLSTREET
The Dow Jones Industrials and S&P 500 fell significantly at the start of trade on Wednesday, as investors pored through downbeat remarks from the top-ranking Federal Reserve official amid jitters about reopening the economy.
The Dow fell another 153.15 points, on top of Tuesday’s 450-point-plus decline to 23,611.63.
The S&P 500 fell 9.02 points to 2,861.10.
The tech-heavy index NASDAQ slumped 189.79 points, or 2.1%, to 9,002.55.
Exxon Mobil and American Express were the worst-performing stocks in the Dow, falling at least 3% each. Energy dived 2.8% and financials sank 1.5% to lead the S&P 500 lower. Gains from Amazon and Netflix gave the NASDAQ a boost.
“While the economic response has been both timely and appropriately large, it may not be the final chapter, given that the path ahead is both highly uncertain and subject to significant downside risks,” Fed Chairman Jerome Powell said in prepared remarks for a webcast event with the Peterson Institute for International Economics, noting that more needs to be done to sustain the economy.
Prices for the 10-Year Treasury were stagnant, keeping yields at Tuesday’s 0.66%. Treasury prices and yields move in opposite directions.
Oil prices faltered 32 cents to $25.46 U.S. a barrel.
Gold prices jumped $5.30 to $1,712.10 U.S. an ounce.
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