Markets in Canada’s largest centre were ailing on Wednesday ahead of the U.S. Federal Reserve policy meeting.
The S&P/TSX composite index fell 47.16 points to open Wednesday at 15,463.38
The Canadian dollar gained 0.12 cents to 91.26 cents U.S.
Endo International Plc made an unsolicited offer to buy Auxilium Pharmaceuticals Inc for about $2.2 billion, which analysts said could complicate Auxilium's buyout of Canadian eye drug maker QLT Inc., whose shares took a header of 98 cents, or 14.3% to $5.87.
Pipeline operator TransCanada Corp.’s chief executive said the company is likely to haul Canadian oil sands crude by rail whether or not its embattled Keystone XL pipeline project is finally approved by Washington. TransCanada shares gave back 27 cents to $58.55.
RBC raised the price target on Algonquin Power & Utilities Corp. to $10.00 from $9.50. Algonquin shares were virtually unchanged at $8.84.
Recent Canadian economic data has been encouraging, particularly on exports, Bank of Canada Governor Stephen Poloz said on Tuesday, but he pointed to a substantial amount of slack in the job market.
ON BAYSTREET
The TSX Venture Exchange recovered 2.26 points to 977.38.
Nine of the 14 Toronto subgroups were lower soon after the opening bell, with global base metals, gold and energy down 0.9%.
The five gainers were led by health-care, stronger 0.3%, real-estate, up 0.2%, and industrials, inching up 0.1%.
ON WALLSTREET
The U.S. stock market moved higher on Wednesday, building on the biggest one-day gain in four weeks during the previous session and sending the Dow Jones Industrial Average to intraday record high.
The Dow Jones Industrials advanced 29.37 points to open at 17,161.34.
The S&P 500 added 4.08 points to 2,003.06. The NASDAQ improved 9.64 points to 4,562.40
Auxilium Pharmaceuticals Inc. soared 42%, after news late Tuesday that Endo International PLC will buy it for $28.10 per share in a cash-and-stock deal. Endo was up 5%.
Lennar Corp. rose 4.8% after posting a 47% rise in third-quarter profit on Wednesday as higher prices and deliveries drove up revenue.
General Mills Inc. fell 2% after posting a disappointing quarterly profit.
DuPont shares rose 3.8% after an investor urged a breakup of the company.
FedEx Corp. rose 3.7% after posting better-than-expected profit and sales.
U.S. Steel Corp. was up 10% after the company said it was making major strategic changes late Tuesday.
Adobe Systems Inc. fell 3%. The software maker posted quarterly results on Tuesday.
Worries about the U.S. Federal Open Market Committee meeting conclusions have coloured much of the market action in the past few days. However, earlier sentiment on Wednesday was lifted by People’s Bank of China’s most recent steps to inject billions into its banking system in order to boost flagging growth.
In economic news, U.S. consumer prices fell in August for the first time in 16 months, largely because of a decline in the cost of filling up at the gas station. Separately, the U.S. current account deficit fell to $98.5 billion U.S. in the second quarter from a revised $102.2 billion U.S. in the first quarter, the Commerce Department said Wednesday.
A gauge of confidence among home builders rose in September to the highest level since November 2005, according to National Association of Home Builders/Wells Fargo data released Wednesday.
But the main attraction on Wednesday is the FOMC statement, due at 2 p.m. Eastern Time, which will be followed by a news conference with Federal Reserve Chairwoman Janet Yellen
Prices for 10-year U.S. Treasuries gained slightly, lowering yields to 2.58% from Tuesday’s 2.59%. Treasury prices and yields move in opposite directions.
Oil prices slid seven cents to $94.81 U.S. a barrel.
Gold prices dipped a dime to $1,236.60 U.S. an ounce.
