Canada’s main stock index fell on Tuesday on persistent Greek debt worries and as investors awaited the U.S. Federal Reserve’s looming interest rate decision.
The S&P/TSX composite index remained negative 29.06 points to greet noon Tuesday at 14,726.99
The Canadian dollar was down 0.08 cents to 81.08 cents U.S.
Suncor Energy was among the heftiest decliners on the index, falling 0.7% to $34.00, along with Enbridge Inc, which declined 0.7% to $55.44.
The materials group, home to mining stocks, saw some of the index’s bigger losses, Barrick Gold Corp shares fell 2.3% to $13.83.
Copper prices declined 0.9% to $5,765.50 U.S. a tonne. Teck Resources ditched 2.4%, to $13.40.
On the economic ledger, Statistics Canada reported that foreign investors purchased Canadian securities for a fourth straight month in April, adding $12.9 billion to their holdings.
At the same time, our investments offshore resumed with acquisitions of foreign securities totaling $6.6 billion in the month, mainly non-U.S. foreign securities.
ON BAYSTREET
The TSX Venture Exchange moved up 1.1 points to 679.49.
Nine of the 14 Toronto subgroups were down by midday, with metals and mining each down 1.2%, and materials sinking 0.9%.
The five gainers were led by consumer discretionary stocks, which improved 0.5%, while energy and information technology each eked up 0.1%.
ON WALLSTREET
U.S. stocks traded higher on Tuesday as investors attempted to shake off worries over lack of resolution in Greece debt talks amid the Federal Reserve's two-day meeting.
The Dow Jones Industrials zoomed 78.01 points to 17,869.18, with UnitedHealth leading advancers and Caterpillar the greatest laggard.
The S&P 500 index gained 5.84 points to 2,090.27, with consumer staples leading eight sectors higher and industrials and telecommunications the only decliners.
The NASDAQ moved higher 11.38 points to 5,041.35
Earnings due after the bell include Adobe Systems, Bob Evans Farmsand La-Z-Boy.
Economic data releases continued to show moderate growth.
May housing starts showed an 11.1% decline, missing expectations, while building permits increased 11.8% month-over-month.
The Federal Open Market Committee begins its highly-anticipated meeting on Tuesday. The real news of interest on monetary policy won't come until Wednesday afternoon, when the Fed releases its statement and Chair Janet Yellen holds a press conference. Consensus is for a rate hike in September.
Greek Prime Minister Alexis Tsipras on Monday blamed creditors for the collapse of talks on unlocking aid for reforms at the weekend. The impasse has raised concerns that Athens is heading for a debt default that could end with it leaving the euro-zone.
Tsipras told lawmakers of his Syriza party that the lenders want to humiliate the Greek government and the creditors' obsession for a program of cuts cannot be a mistake—it has political ends.
The prime minister also said they will continue to work for a solution but their public mandate is to end austerity, while Greek officials want a deal that ends talk of "Grexit" once and for all.
Prices for 10-year U.S. Treasuries gained, lowering yields to 2.32% from Monday’s 2.36%. Treasury prices and yields move in opposite directions.
Oil prices gained 58 cents a barrel to $60.10 U.S.
Gold prices fell $8.20 at $1,177.60 U.S. an ounce.
