The TSX reversed its earlier course and shed gains Wednesday, hurt by the continuous dive in energy stocks, with oil prices still under pressure from the latest report of the U.S. Energy Information Administration
The S&P/TSX composite index fell 98.82 to conclude Wednesday at 13,531.85
The Canadian dollar slid 0.22 cents to 75.48 cents U.S.
Gold stocks took the worst beating Wednesday afternoon, as Torex Resources reversed seven cents, or 6.1%, to $1.08, while Primero Mining dipped 23 cents, or 7.2%, to $2.97.
By mid-afternoon, investors seem to have shifted focus to the EIA's oil update and away from China's reassuring statements about helping the economy with its monetary policy and speedier tax reforms. The EIA said more oil was pumped into an already oversupplied market last week, with U.S. crude oil inventories increasing by 4.7 million barrels.
As a result, energy stocks suffered as well, with Paramount Resources plunging $1.21, or 9.5%, to $11.51, while Penn West Petroleum dove seven cents, or 8.9%, to 72 cents.
Industrials tried to buoy markets, with Bombardier racing ahead 27 cents, or 22.7%, to $1.46, while CAE Inc. gained 54 cents, or 3.9%, to $14.40.
Consumer discretionary stocks also fared well, as RONA gathered 31 cents, or 2.3%, to $13.70, while Great Canadian Gaming came up nuggets 64 cents, or 3.6%, to $18.31
First Quantum Minerals was the most actively moving stock, dumping 42 cents, or 5.5%, to $7.20, on 7.7 million shares.
On the economic front, the Bank of Canada announced this morning that, as expected, it is keeping its target for the overnight rate at 0.5%. The Bank Rate is correspondingly 0.75% and the deposit rate is 0.25%
Moreover, Statistics Canada reported that building permits issued by municipalities edged down 0.6% to $7.7 billion in July, following a 15.5% increase in June.
Lower construction intentions in the non-residential sector, mainly in Ontario and Alberta, accounted for much of the decrease at the national level.
A report from Canada Mortgage and Housing Corporation revealed that housing starts showed the seasonally adjusted annualized rate of housing starts jumped to 216,924 in August from an upwardly revised 193,253 units in July. Forecasters had expected 190,000 starts.
ON BAYSTREET
The TSX Venture Exchange faded 6.27 points Wednesday to 550.35
All but three of the 14 TSX subgroups were lower, with gold down 2.8%, energy plummeting 2.1%, and materials 1.6% to the bad.
The three gainers were industrials, up 0.8%, consumer discretionaries up 0.5%, and the metals and mining group 0.3% better.
ON WALLSTREET
U.S. stocks closed more than 1% lower Wednesday, weighed by declines in oil prices and failing to extend a rally in global markets despite talk of stimulus overseas.
The Dow Jones industrial average dove 239.11 points, or 1.5%, to 16,253.57. 3M, Home Depot, IBM and Apple had the greatest negative impact on the index.
The S&P 500 dropped 27.37 points, or 1.4%, to 1,942.04. Energy ended down almost 2% to lead all sectors in the S&P 500 lower.
The NASDAQ index tumbled 55.4 points, or 1.2%, to 4,756.53. Apple closed nearly 2% lower, after initially spiking more than 1.5% amid its afternoon event, at which the company unveiled new products.
Economically speaking, traders eyed the Job Openings and Labor Turnover Survey (JOLTS) which showed the number of job openings was 5.8 million, the U.S. Bureau of Labor Statistics said.
The key non-farm payrolls report Friday reinforced expectations that labour conditions are strong enough to support a rate hike, which could possibly come as soon as the Federal Reserve's meeting next week.
China's Ministry of Finance said the government will strengthen fiscal policy, boost infrastructure spending and speed up reform of its tax system, adding to other steps to re-energize sputtering growth.
Prices for 10-year U.S. Treasuries hesitated, boosting yields to 2.20% from Tuesday’s 2.19%. Treasury prices and yields move in opposite directions.
Oil prices dropped $1.68 a barrel to $44.26 U.S.
Gold prices sank $14.20 to $1,106.80 U.S. an ounce.
