The opening bell signaled lower figures for equity markets in Toronto on Thursday, after U.S. Federal Reserve Chair Janet Yellen hinted at a potential earlier-than-anticipated increase in interest rates.
The Toronto Stock Exchange's S&P/TSX composite index began Thursday’s session down 4.72 points, at 14,329.32.
The Canadian dollar descended 0.18 cents at 88.77 cents U.S.
Alberta Premier Alison Redford said she would resign this weekend from the helm of the oil-rich province following an expenses scandal that sank her party's popularity.
Peru said it was working with Bear Creek Mining to avoid being sued by the company under free trade protections over its suspended silver project. Bear Creek shares squeezed up a penny to $2.01 soon after the open.
A record-shattering Canadian harvest, combined with one of the most frigid winters in decades, has created a grain-handling backlog that will not be cleared until next year, the head of Canadian National Railway Co said. CN shares fell 0.6% to $62.75.
On the economic beat, Statistics Canada reported this morning that 502,500 people received regular Employment Insurance (EI) benefits in January, down 9,900, or 1.9%, from the previous month.
ON BAYSTREET
The TSX Venture Exchange eased 4.93 points to 1,033.94
Eight of the 14 Toronto subgroups were down in early trading, industrial stocks and information technology each crept lower 0.6%, while metals and mining dropped 0.5%.
The five gainers were led by gold, up 0.5%, health-care, advancing 0.3%, and global base metals, eking up 0.05%. Materials were unchanged in the first hour.
ON WALLSTREET
The most powerful central banker in the world has spoken and markets are still reacting Thursday.
The Dow Jones Industrial Average shook off Wednesday’s cobwebs and gained 24.85 points to begin Thursday’s session at 16,247.02
The S&P 500 index recovered 2.83 points to 1,863.60. The NASDAQ gained 3.20 points to 4,310.80
Investors are still digesting the outcome of the U.S. Federal Reserve's policy meeting Wednesday -- the first under the direction of chair Janet Yellen.
The official statement was as expected: The Fed will continue reducing its bond buying in April and the central bank will now base its interest rate policy on inflation data and a broad array of labor market indicators, instead of the unemployment rate alone.
In corporate news, Burlington Stores reported a quarterly jump in same-store sales and adjusted net income year-to-year. Homebuilder Lennar issued a strong report and said new orders in the latest quarter rose 10%.
Nike will report after the close.
Shares of Guess fell after the apparel maker's revenue forecasts fell below analyst expectations.
Prices for 10-year U.S. Treasuries were down, lifting yields to 2.78% from Wednesday’s 2.77%. Treasury prices and yields move in opposite directions.
Oil prices dove 37 cents to $100.00 U.S. a barrel.
Gold prices subsided $15.90 to $1,325.40 U.S. an ounce.
