Canada's main stock index extended losses to a fifth straight session on Wednesday, dragged by energy stocks, while U.S. inflation data fanned expectations of aggressive rate hikes in the world's largest economy.
The TSX Composite removed 4.72 points to 18,211.96.
The Canadian dollar inched 0.02 cents to 72.53 cents U.S.
Consumer staple stocks had a banner morning, with Saputo taking on 91 cents, or 3%, to $31.40, while North West Company increased 72 cents, or 2.1%, to $34.42.
Health-care issues also made a statement, as Tilray moved up eight cents, or 2%, to $4.05, while Bellus Health gained 21 cents, or 1.7%, to $12.67.
Energy stocks brought things down, as Athabasca Oil chopped off seven cents, or 3%, to $2.28, while Baytex Energy handed back 17 cents, or 2.6%, to $6.47.
In utilities, Innergex slid 51 cents, or 3.2%, to $15.38, while Algonquin Power and Utilities lost 18 cents, or 1.2%, to $14.41.
ON BAYSTREET
The TSX Venture Exchange dropped 6.74 points, or 1.2%, to 581.16.
Eight of the 12 TSX subgroups had advanced into green territory by noon, as consumer staples gained 1.6%, health-care was haler 1.3%, and real-estate picked up 1.1%.
The four laggards were weighed most by energy, down 0.8%, utilities, retreating 0.5%, and materials, flopping 0.3%.
The five gainers were led by consumer staples, ahead 1.1%, while information technology advanced 0.6%, and gold picked up 0.4%.
ON WALLSTREET
Stocks rose Wednesday as investors shook off inflation data that came in higher than expected and looked ahead to a key consumer report that will inform the pace of the Federal Reserve’s rate hikes going forward.
The Dow Jones Industrials broke for lunch ahead 146.77 points to 29,385.96.
The S&P 500 claimed 13.6 points to 3,602.44, boosted by a 10% jump in shares of Moderna.
The NASDAQ Composite recovered 43.20 points to 10,469.40.
Stocks whiplashed between gains and losses earlier in the morning when the September producer price index, a gauge of final-demand wholesale prices, came in higher than expected. The print was up 0.4% in September, more than the consensus estimate of a 0.2% increase, according to Dow Jones.
The PPI number is one of the inflation gauges investors are watching alongside the Federal Reserve. If inflation stays high, the central bank is more likely to continue its aggressive path of interest rate hikes to bring it back into check.
That means rates will continue to rise and may stay high for longer than markets expect, weighing on stocks.
Treasury prices nicked higher, lowering yields to 3.94% from Tuesday’s 3.94%. Treasury prices and yields move in opposite directions.
Oil prices sank $1.31 to $88.04 U.S. a barrel.
Gold prices dumped $7.80 to $1,678.20 U.S. an ounce.
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