Canada's main stock index fell on Wednesday for the second straight session as hefty losses among energy companies following an unprecedented election outcome in Alberta province pushed the market to its lowest level in more than a month.
The S&P/TSX composite index slid 169.97 points, or 1.1%, to greet noon at 15,003.97
The Canadian dollar bolted higher 0.28 cents to 83.14 cents U.S.
The left-wing New Democratic Party beat the Progressive Conservatives in a crushing victory that ended the center-right party's 44-year hold on power in the Western Canadian, oil-producing province.
Energy stocks plunged on a day which saw crude prices surge to 2015 highs, typically a positive driver for the sector.
The top three most influential decliners on the index were Enbridge Inc, which fell 3% to $60.84; Suncor Energy, which tumbled 3.7% to $36.92; and Canadian Natural Resources, which sank 4.1% to $37.99.
Other heavy losers included the materials group, , hurt in part by lower metal prices.
Financial shares, another big index mover, were down, with Royal Bank of Canada falling 0.7% to $79.95.
Telecoms were the lone gainers. Rogers Communications Inc led with a 3.6% jump to $43.67, followed by Telus Corp, which was up 1.7%, at $41.54.
On the economic slate, Western University’s IVEY School of Business released its Purchasing Managers’ Index, which in April stood at 58.2, compared to 54.1 for the corresponding month last year, and 47.9 in March of this year.
The index canvasses purchasing managers as to whether their purchases improved, decreased, or stayed the same each month. A reading over 50 indicates an increase; under 50, a decrease.
ON BAYSTREET
The TSX Venture Exchange moved down 9.19 points to 687.56
All but two of the 14 Toronto subgroups were negative at noon, as gold stocks dulled 2.3%, energy doffed 2.1%, and metals and mining dipped 1.5%
Only telecoms – up 1.1%, and consumer discretionaries, up 0.1% improved.
ON WALLSTREET
U.S. stocks held lower after a positive open on Wednesday as investors weighed comments from the Fed Chair on valuation amid higher yields and energy prices.
The Dow Jones Industrials went down 80.11 points to 17,848.09, with Microsoft and Intel the greatest laggards and Home Depot leading gains.
The S&P 500 index dipped 6.56 points to 2,082.90, with telecommunications leading all sectors lower except materials.
The NASDAQ skidded 14.77 points to 4,924.56.
Fed Chair Janet Yellen said on Wednesday morning in a conversation with IMF Managing Director Christine Lagarde that equity valuations are generally quite high.
Major earnings due on Wednesday included SodaStream, Wendy's, GlaxoSmithKline before market open.
GlaxoSmithKline reported revenue in line with estimates, but earnings short of forecasts. Glaxo had better than expected results for vaccines and consumer health care, but pharmaceuticals were a drag on profits.
Wendy's earned an adjusted six cents per share for its latest quarter, one cent above estimates, though revenue was below forecasts.
The fast food chain also announced plans to sell its bakery operations during this quarter, and will refinance its existing debt.
Mylan reported adjusted quarterly profit of 70 cents U.S. per share, one cent above estimates. Revenue was below estimates, impacted by the strong dollar. Activity in Mylan's stock has been driven recently by a three-way takeover battle in which it is trying to buy Perrigo while fending off a takeover bid from Teva.
Activision Blizzard, 21st Century Fox, Tesla Motors, Whole Foods all report after the bell.
Traders also noted another day of large corporate issuance as investors made room in their portfolios and hedged.
Apple, rated Aa1/AA+, announced on Wednesday a seven-tranche U.S. dollar benchmark bond to finance the repurchase of stock and dividends.
Tuesday marked the eighth busiest day of the year for corporate bond issuance, with AbbVie offering $16.7 billion U.S.. Last week, Oracle issued $10 billion U.S. in bonds.
The ADP Employment Report showed 169,000 jobs were created in April, below expectations.
The report, which could foreshadow Friday's employment report, was expected to record a modest rise in the rate of job creation to around 200,000 in April, according to analysts.
Prices for 10-year U.S. Treasuries slid, raising yields to 2.24% from Tuesday’s 2.17%. Treasury prices and yields move in opposite directions.
Oil prices gained 56 cents to $60.96 U.S.
Gold prices stepped back $4.10 to $1,189.10 U.S.
