Canada's main stock index surrendered gains on Wednesday as data showing easing inflation boosted bets that the Bank of Canada could slow its pace of monetary policy tightening, while gains in commodity stocks added to the risk-on sentiment.
The TSX rolled gradually into the red 0.77 points to stop and regroup Wednesday at 20,456.69.
The Canadian dollar tailed off 0.28 cents at 74.66 cents U.S.
The TSX was on track for a ninth straight session of gains, its longest winning streak since October 2021.
France's BNP Paribas said it had received all the necessary regulatory approvals to complete its previously-announced sale of its U.S. unit Bank of the West to Bank of Montreal. BMO's shares listed lower 12 cents midday to $131.89.
Wesdome Gold Mines slumped $1.36, or 17.5%, to $6.41 after the company reported lower-than expected production in the fourth-quarter.
On the economic calendar, Statistics Canada’s industrial product price index declined 1.1% month over month in December and was up 7.6% year over year. The raw materials price index The Raw Materials Price Index fell 3.1% on a monthly basis in December and increased 7.5% year over year.
ON BAYSTREET
The TSX Venture Exchange rebounded 4.21 points to 621.59.
Eight of the 12 subgroups had shifted negative by noon hour, with health-care faltering 1%, consumer staple and consumer discretionary stocks were each off 0.8%.
The four gainers were led by materials, ahead 1.4%, energy, rumbling 0.8%, while gold surged 0.6%.
ON WALLSTREET
Stocks gave back earlier gains on Wednesday as investors hit the brakes on the New Year’s rally, now in its third week.
The Dow Jones Industrials plummeted 378.06 points, or 1.1%, to 33,532,79.
The S&P 500 lost 30.63 points to 3,960.34
The NASDAQ Composite Index subtracted 57.53 points to 11,037.58, and was on pace for its first down day in the last eight.
Microsoft announced plans to lay off about 10,000 employees, which hurt investor sentiment. The stock fell and dragged the Dow lower with it.
Declining prices were also reflected in retail sales, which fell 1.1% in December, slightly more than the 1% forecast.
Southwest shares fell 2% amid news that the company’s pilots union is calling a vote to approve a potential strike.
The moves came after the latest reading on the producer price index, which measures input costs from companies and could be a leading indicator of future inflation, showed a 0.5% decline for December. Economists surveyed by Dow Jones expected a 0.1% decline. That gave relief to investors who have hoped for inflation to retreat and for the Federal Reserve to slow or stop its rate hikes.
Prices for the 10-year Treasury were up sharply, lowering yields to 3.43% from Tuesday’s 3.55%. Treasury prices and yields move in opposite directions.
Oil prices gained 81 cents to $80.99 U.S. a barrel.
Gold prices faded $1.80 to $1,908.10 U.S. an ounce.
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