Canada's main stock index opened higher on Wednesday, ahead of a U.S. Federal Reserve statement
The S&P/TSX composite index began the day up 58.32 points to 14,811.37
The Canadian dollar was down 0.13 cents to 81.24 cents U.S.
Calfrac Well Services halved its quarterly dividend to 6.25 cents per share, citing lower crude oil prices and weak demand for oilfield services. The board had also approved additional 2015 capital of about $12 million to fund the expansion of Calfrac's Latin American operations, the company said.
Calfrac shares ditched two cents to $7.83.
Democratic Republic of Congo said on Tuesday that Ivanhoe Mines’ sale of a stake in the Kamoa copper mine to China's Zijin Mining should be suspended until concerns raised by the government can be resolved. Vancouver-based Ivanhoe announced last month that it would sell a 49.5% stake in Ivanhoe subsidiary Kamoa Holding Ltd to China's Zijin Mining Group Co Ltd for $412 million.
Ivanhoe shares lost six cents to 94 cents.
CIBC raised the target price on Sun Life Financial to $44.00 from $43.00 after the company announced that it would be acquiring the Canadian and U.S. investment management and real estate services businesses of Bentall Kennedy.
Sun Life shares gained 34 cents to $42.62.
RBC raised the target price on Yellow Pages Ltd. to $25.00 from $24.00 following the company's announced acquisition of ComFree/DuProprio.
Yellow shares took on 16 cents to $19.80.
CIBC initiated coverage on GDI Integrated Facility Services with an outperform rating saying that the company is a janitorial service provider with a growing complimentary services offering.
On the economic ledger, Statistics Canada reported that wholesale sales rose 1.9% to $55.2 billion in April, a second consecutive increase. The agency says sales were up in four of seven sub-sectors, led by the motor vehicle and parts sub-sector. Excluding this sub-sector, wholesale sales increased 0.4%.
ON BAYSTREET
The TSX Venture Exchange moved up 2.06 points to 680.81.
All but two of the 14 Toronto subgroups were positive, led by energy, gushing 1.3%, while consumer discretionaries and materials each up 0.3%.
The two laggards were global base metals, sliding 0.1%, and gold, off 0.01%.
ON WALLSTREET
U.S. stocks opened higher on Wednesday as investors awaited the Federal Reserve statement and press conference.
The Dow Jones Industrials raced higher 42.77 points to 17,947.25, with Cisco leading nearly all blue chips higher. General Electric and Microsoft were the only laggards.
The S&P 500 index gained 5.11 points to 2,101.40, with energy leading all 10 sectors higher.
The NASDAQ moved higher 17.58 points to 5,073.13
Starbucks hit an all-time high on news the firm will close all 23 of its La Boulange retail locations by the end of September.
Oracle is among a handful of companies reporting earnings after the close.
The Federal Open Market Committee concludes its two-day meeting in the afternoon. The statement is expected at 2:00 p.m. ET and Fed Chair Janet Yellen is scheduled to hold a press conference at 2:30 p.m.
Most analysts do not expect major policy changes from the Federal Reserve announcement.
In the continuing Greece debt saga, the European Central Bank could make an announcement on Emergency Liquidity Assistance for the country when the institution leaders meet today.
Greek banks are reliant on this funding and analysts warn that if the central bank curbs this liquidity, Greece may have no option but to impose capital controls.
The cash-strapped nation is set to default on a 1.6-billion-euro ($1.8-billion U.S.) debt repayment to the International Monetary Fund on June 30 unless it receives fresh funding from its creditors, who insist Athens needs to make further reforms if it wants to unlock aid.
Prices for 10-year U.S. Treasuries faded, raising yields to 2.36% from Tuesday’s 2.31%. Treasury prices and yields move in opposite directions.
Oil prices took on 93 cents a barrel to $60.90 U.S.
Gold prices dipped $2.90 at $1,178.00 U.S. an ounce.
