Losses in industrial and financial shares dragged Canada's main stock index lower on Wednesday, with investors worrying that aggressive policy tightening by central banks would stifle economic growth.
The S&P/TSX came off their lows of the morning, and had climbed to within 14.66 points of breakeven to reach noon hour at 20,913.55
The Canadian dollar moved tentatively up 0.09 cents to 79.85 cents U.S.
In corporate earnings, Dollarama jumped $2.39, or 3.4%, to the top of the index, at $72.20, after it beat estimates for quarterly sales as surging inflation fueled demand for the discount store's groceries and household essentials.
Canada's budgetary watchdog said on Tuesday prices in this country are rising at their quickest pace in 31 years, but that is not yet feeding in to a wage spiral, with inflation still expected to return to target in coming years.
Internationally, the Organization for Economic Cooperation and Development on Wednesday cut its 2022 global growth forecast to 2.8% from 3.2%, a day after the World Bank slashed its estimates by nearly a third to 2.9%.
ON BAYSTREET
The TSX Venture Exchange gained 4.09 points, to 726.86.
Seven of the 12 TSX subgroups were negative in the first hour, with industrials down 0.8%, gold off 0.7%, and financials sliding 0.5%.
The five gainers were led by consumer discretionary and energy stocks, each up 0.3%, while information technology eked ahead 0.2%.
ON WALLSTREET
Stocks were mixed on Wednesday as investors kept an eye on the bond market and signs of an economic slowdown.
The Dow Jones Industrials slid 53.81 points to move into noon hour EDT at 33,126.33.
The S&P 500 lost 9.5 points to 4,151.18.
The NASDAQ Composite remained above breakeven 16.14 points to 12,191.37.
Overseas, Credit Suisse issued a profit warning for the second quarter, citing tighter monetary policy and the war in Ukraine. Target, which issued its own warning on Tuesday, was under pressure again on Wednesday after being downgraded to neutral from buy by Bank of America.
Meanwhile, the Atlanta Federal Reserve’s GDPNow tracker now shows a growth rate of just 0.9% for the second quarter, down from 1.3% last week. Mortgage demand hit its lowest level in 22 years last week, according to the Mortgage Bankers Association.
Semiconductor stocks struggled on Wednesday, with Intel falling more than 4% after management comments at a Bank of America conference led a Citi analyst to predict a negative pre-announcement for the second quarter. Shares of Marvell Technology fell 2%.
On the earnings front, shares of Ollie’s Bargain Outlet Holdings fell more than 1% in early trading after the discount retailer missed estimates for its first quarter. Campbell Soup, however, moved higher by about 3% after a stronger-than-expected quarterly report.
Treasury prices shed strength, raising yields to 3.02% from Tuesday’s 2.98%. Treasury prices and yields move in opposite directions.
Oil prices gained $2.52 to $121.93 U.S. a barrel.
Gold prices brightened nine dollars to $1,861.10 U.S. an ounce.
