Equities in Toronto edged lower on Thursday, as markets digested mixed signals from the U.S. Federal Reserve, while gains in gold and crude prices limited the decline.
The TSX dropped 42.78 points to stop for lunch at 20,311.90.
The Canadian dollar hiked 0.31 cents at 73.66 cents U.S.
Canadian Natural Resources narrowly missed analysts' estimates for first-quarter profit, as lower energy prices more than offset a rise in production for the country's largest oil and gas producer. Natural Resources shares handed over $1.63, or 2.1%, to $74.81.
First Horizon Corp and Toronto-Dominion Bank Group have agreed to call off their $13.4 billion deal on lack of clarity on if and when they would get regulatory approvals to close the deal. TD shares had shed 24 cents by noon EDT to $81.23.
On the economic beat, Statistics Canada noted in March, Canada's merchandise imports decreased 2.9%, while exports were down 0.7%. As a result, Canada's merchandise trade balance with the world moved from a revised $487 million deficit in February to a $972-million surplus in March.
What’s more, the IVEY PMI dwindled to 56.8 in April from March's 58.2, and much lower than the 69.9 figure in April 2022.
ON BAYSTREET
The TSX Venture Exchange edged up 0.94 points to 607.05.
All but three of the 12 TSX subgroups were negative midday, with health-care withering 4%, while consumer discretionary stocks down 2.1%, and financials lost 1.4%.
The three gainers proved to be information technology, zooming 5.2%, gold, brighter by 3.4%, and materials, stronger 0.8%.
ON WALLSTREET
Stocks declined Thursday, as contagion fears in the regional bank space were reignited. Investors also digested the Federal Reserve’s 25-basis-point rate hike and commentary following its Wednesday meeting.
The Dow Jones Industrials dumped 424.39 points, or 1.3%, to move into noon hour Thursday at 32,989.95.
The S&P 500 lost 35.97 points to 4,054.78.
The NASDAQ Composite swooned 66.12 points to 11,995.21.
The Dow turned negative 0.1% year to date on Thursday. Declines in Boeing, Disney, Goldman Sachs and American Express shares pulled back the Dow.
Shares of PacWest tanked by more than 50%. The decline came after news that the California bank has been assessing strategic options, including a possible sale. Regional bank shares sold off hard. Western Alliance tumbled 43% and saw trading halted multiple times due to volatility. Meanwhile, Zions Bancorporation lost 8.2%.
As the Fed pushed through its 10th rate hike in this cycle and the central bank seemed to soften its language on future increases, Chair Jerome Powell said that it may be too soon to cut.
Prices for the 10-year Treasury climbed, lowering yields to 3.32% from Tuesday’s 3.42%. Treasury prices and yields move in opposite directions.
Oil prices ditched a nickel to $68.55 U.S. a barrel.
Gold prices recovered $24.10 to $2,061.10 U.S. an ounce.
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