North American markets were lower Wednesday ahead of a much-anticipated announcement this afternoon from the U.S. Federal Reserve at the end of its two-day policy meeting.
The S&P/TSX composite index fell 25.43 points midday to 12,808.68
The Canadian dollar eased 0.07 cents to 97.04 cents U.S.
On the corporate front, smartphone maker BlackBerry announced that a new phone will hit the markets in the coming weeks. The BlackBerry Z30 comes with a five-inch display, which means it's about the same size as its competitor, the Samsung Galaxy S4. The company says the phone has a larger battery that will last for up to 25 hours.
The Waterloo, Ont., company says the new phone will be available at a number of Canadian carriers, though specific dates haven't been announced.
BlackBerry has been in the midst of major changes with its organization and has a committee considering strategic alternatives, which could include the sale of the company. Its shares rose 0.6%, or six cents, to $10.94 on the Toronto Stock Exchange.
The TSX was mixed, as the energy sector lost ground, as Niko Resources tumbled 9.5 cents, or 2.4%, to $3.82. The gold sector was down, as Agnico-Eagle Mines fell 52 cents, or 1.9%, to $27.59.
The metals and mining sector was up slightly, while December copper was ahead five cents to $3.27 U.S. a pound. Teck Resources docked five cents to $28.48, and Rio Alto Mining slipped 4%, or nine cents, to $2.15.
Meanwhile, Bank of Canada Governor Stephen Poloz said in a speech Wednesday that the Canadian economy is approaching a tipping point amid improved confidence among businesses and signs of stronger foreign demand.
However, Poloz added that Canada should be able to support stronger growth without stoking inflation -- the key factor on the central bank's interest rate decisions.
The Bank of Canada has maintained its influential overnight interest rate at 1% since September 2010, although it has indicated that the rate will go up at some time.
ON BAYSTREET
The TSX Venture Exchange remained positive 1.84 points to 935.90
All but four of the 14 Toronto subgroups were lower at lunch hour, as gold stocks dropped 1.5%, health-care issues were 1.2% less hale, and materials suffered 0.9%.
The four gainers were led by industrials, up 0.2%, telecoms, inching up 0.1%, and consumer staples, better by only 0.04%.
ON WALLSTREET
The U.S. Federal Reserve will finally tell investors whether the central bank will cut back on its bond buying program in a statement at 2 p.m. Wednesday. Till then, investors are playing it close to the vest.
The Dow Jones Industrials slid 58.98 points to 15,470.80 at noon ET
The S&P 500 index ditched 3.89 points to 1,700.87. The NASDAQ faded 7.04 points to 3,738.66.
FedEx reported an increase in quarterly sales and net income, compared to a year-ago. Earnings topped forecasts and shares rose on the news.
Despite a relatively rosy quarter, FedEx, which is often viewed as an economic bellwether because of its global footprint, gave investors an iffy assessment on the economy.
Soccer club Manchester United reported a jump in quarterly revenue, compared to the prior year, and a surge in net profit, compared to the year-earlier loss. The stock was up modestly.
Adobe Systems shares hit all-time highs after the software maker reported strong subscription growth for its "Creative Cloud" service on Tuesday.
Investors have been bracing for the Fed to cut back -- or taper -- its stimulus measures for some time. The Fed has been buying $85 billion U.S. in bonds and other securities a month.
Many experts are forecasting the Fed will make a small cut to these purchases since the overall economy has improved and the unemployment rate has fallen.
Investors received one disappointing reading on the health of the economy before the Fed meeting though. The U.S. Census Bureau's monthly reports on housing starts and building permits came in below expectations.
Prices for the 10-year U.S. Treasury faded slightly, raising yields to 2.87% from Tuesday’s 2.85%. Treasury prices and yields move in opposite directions.
Oil prices gained $1.50 to $106.92 U.S. a barrel.
Gold prices fell $11.30 at $1,298.10 U.S. an ounce.
