Equities in Toronto opened lower on Wednesday as commodity-related stocks fell, tracking lower crude and metal prices, while investors assessed mixed data at home and from the U.S.
The TSX Composite shrank 229.19 points, or 1.1%, at 20,718.99.
The Canadian dollar dumped 0.22 cents to 73.91 cents U.S.
Gildan Activewear alleged undisclosed investments from its former chief Glenn Chamandy, a day after new CEO Vince Tyra assumed his post. Gildan shares slipped 18 cents to $42.07.
On the economic slate, Statistics Canada reported Canadian investors purchased $12.5 billion of foreign securities in November, after divesting $8.2 billion in October. At the same time, foreign investors acquired $11.4 billion of Canadian securities, following three consecutive months of divestment totalling $39.7 billion.
The agency also said its Industrial Product Price Index fell 1.5% month over month in December and was 2.7% lower than December 2022, while its Raw Materials Price Index declined 4.9% on a monthly basis in December 2023 and fell 7.9% year over year.
ON BAYSTREET
The TSX Venture Exchange let go of 5.34 points, or 1%, to open Wednesday at 552.90
The 12 subgroups were lower in the first hour, weighed most by gold, down 2.2%, materials, off 2%, and information technology, sliding 1.5%.
ON WALLSTREET
Stocks fell Wednesday, building on the losses seen in the previous session, as yields continued to track higher.
The Dow Jones Industrials ditched 64.23 points at 37,296.89.
The S&P 500 sank 32.96 points to 4,733.02.
The NASDAQ fell 198.11 points, or 1.3%, to 14,746.24.
Fourth-quarter earnings gain steam this week and could serve as the next major test for the market that could dictate the setup for 2024. Shares of Charles Schwab fell 6% after reporting an earnings beat but revenue miss.
Retail sales data for December came in stronger-than-expected, indicating a resilient consumer and putting aggressive rate cuts from the Federal Reserve into doubt. Retail sales were up 0.6% from November, and gained 0.4% month-over-month excluding autos. Economists polled by Dow Jones had estimated a 0.4% month-to-month increase in retail sales and 0.2% ex-autos.
So far, traders are pricing in a roughly 60% chance that the Federal Reserve begins cutting rates in March as hopes mount for a pivot.
The Federal Reserve’s beige book and business inventories for November are also slated for Wednesday, along with remarks from New York Federal Reserve Bank President and CEO John Williams.
Prices for the 10-year Treasury slipped, raising yields to 4.11% from Tuesday’s 4.07%. Treasury prices and yields move in opposite directions.
Oil prices subtracted $1.21 to $71.19 U.S. a barrel.
Gold prices dipped $16.10 to $2,014.1.
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