Canada's main stock index opened flat on Wednesday as investors were cautious ahead of the Bank of Canada's interest rate shortly after markets opened.
The TSX gained 26.45 points to start out Wednesday at 20,301.99
The Canadian dollar eased off 0.03 cents to 72.68 cents U.S.
Among stocks, the U.S. pipeline regulator said it would require TC Energy to reduce operating pressure on more than 1,000 additional miles (1,609 kilometres) of its Keystone pipeline that spilled about 13,000 barrels of oil in rural Kansas in December. TC shares picked up 18 cents to $56.08.
Activist investor Legion Partners Asset Management is pushing for four new directors to join Primo Water Corp's board, arguing they could help its share price triple over five years. Primo shares docked a penny to $20.91.
The Bank of Canada today held its target for the overnight rate at 4.5%, with the Bank Rate at 4.75% and the deposit rate at 4.5%.
Elsewhere in the economic docket, Statistics Canada reported that, in January, Canada's merchandise exports increased 4.2%, while imports were up 3.1%. As a result, Canada's merchandise trade surplus with the world widened from a revised $1.2 billion in December 2022 to $1.9 billion in January 2023.
ON BAYSTREET
The TSX Venture Exchange slid 0.11 points to 626.70.
The 12 TSX subgroups were evenly divided, with materials up 1.3%, gold better by 1.1%, and energy improving 0.8%.
The half-dozen laggards were weighed most by health-care, doffing 0.8%, while utilities and consumer discretionary stocks each lost 0.2%.
ON WALLSTREET
Stocks slipped Wednesday, attempting to recover from Tuesday’s broad-based selloff, spurred by comments from Federal Reserve Chairman Jerome Powell that hinted that interest rates may need to go higher for longer.
The Dow Jones Industrials dipped 17.57 points to begin the mid-week session at 32,838.88.
The S&P 500 recovered 6.15 points to 3,992.52.
The NASDAQ Composite moved forward 13.83 points to 11,544.16.
Stocks briefly took a slight leg lower after data showed job openings fall less than expected in January. A stronger-than-expected February private payrolls report on Wednesday also suggested that the economy is standing strong despite the Fed’s hiking campaign, adding to investor concern that bigger rate increase may be ahead. It precedes Friday’s February jobs data after January’s blockbuster report.
Job openings fell in January but remained elevated and still outnumber available workers by a nearly two-to-one margin, the U.S. Labor Department reported Wednesday.
Available positions totaled 10.824 million for the month, a decline of about 410,000 but still above estimates for 10.58 million.
Stocks are coming off a down session after comments from Powell’s Senate testimony cautioned lawmakers that the central bank’s terminal rate will likely be higher than previously anticipated due to stubbornly high economic data in recent weeks.
Prices for the 10-year Treasury gained, lowering yields to 3.93% from Tuesday’s 3.97%. Treasury prices and yields move in opposite directions.
Oil prices dipped 80 cents to $76.78 U.S. a barrel.
Gold prices inched up $2.90 to $1,822.90 U.S. an ounce.
