Market Update

Foreign Markets Update

TSX Sector Watch

Most Actives

New Listings – TSX

New Listings – TSX-Venture


TSX Opens Lower as Central Bank Stands Pat

Caterpillar Draws Attention

Canada's main stock index opened lower on Wednesday, dragged down by materials and technology stocks after a hot inflation report in the United States pushed back hopes of a June interest rate cut by the Federal Reserve in the run-up to the Bank of Canada's monetary policy decision.

The TSX Composite capsized 216.84 points, or 1%, to open the mid-week session at 22,144.94.

The Canadian dollar handed over 0.4 cents at 73.27 cents U.S.

National Bank of Canada initiated coverage of Hammond Power Solutions with a "sector perform" rating. Hammond shares fell $2.83, or 1.8%, to $154.52.

The Bank of Canada today held its target for the overnight rate at 5%, with the Bank Rate at 5.25% and the deposit rate at 5%. The Bank is continuing its policy of quantitative tightening.

Meantime, money market participants are pricing in a little over 72% bets of a cut in June.

Also, Statistics Canada reported the total monthly value of building permits in Canada increased 9.3% from January to $11.8 billion in February.


The TSX Venture Exchange slumped 5.43 points to 582.74.

All but one of the 12 TSX subgroups were negative in the first hour, with utilities and real-estate each tumbling 1.7%, while information technology lost 1.5%.

The lone holdout was in energy, up 0.6%.


Stocks tanked on Wednesday after March inflation data came in hotter than expected, likely pushing off interest rate cuts by the Federal Reserve that investors have been anticipating.

The 30-stock index plummeted 409.79 points, or 1.1%, to 38,473.88.

The S&P 500 slumped 48.21 points to 5,161.70.

The NASDAQ sank 158.98 points, or 1%, to 16,147.66.

Bank shares, including JPMorgan Chase and industrial shares like Caterpillar, both fell around 1% on worries higher rates will start to suffocate the economy. Once red-hot tech stocks Microsoft and Apple also pulled back more than 1% each.

All sectors in the broad market index were red for the day. Utilities fell more than 3%, leading sector losses for the day. The S&P 500 had been treading water in April in anticipation of this inflation report following a roaring start to the year where the benchmark rallied 10% for its best first quarter gain in five years.

The CPI in March rose 0.4% for the month and 3.5% year-over-year, versus estimates of a 0.3% monthly increase and 3.4% year-over-year, according to economists polled by Dow Jones. Core CPI, which excludes volatile food and energy prices, accelerated 0.4% from the previous month while rising 3.8% from a year ago, compared to estimates for 0.3% and 3.7%, respectively. CPI in April increased at a 3.2% annual pace for all items.

Prices for the 10-year Treasury dropped sharply, raising yields to 4.5% from Tuesday’s 4.36%. Treasury prices and yields move in opposite directions.

Oil prices gained 24 cents to $85.47 U.S. a barrel.

Gold prices docked four dollars to $2,358.40 U.S. an ounce.