Equities in Canada’s biggest market fell on Wednesday, pulling back from a fresh 19-month high the previous day, as lower oil prices weighed on energy stocks, while financials also lost ground as investors braced for the U.S. Federal Reserve interest rate decision.
The S&P/TSX Composite dropped 81.78 points to open Wednesday at 15,303.49
The Canadian dollar regained 0.07 cents to 76.25 cents U.S.
Canexus Corp, which rejected a hostile bid from Chemtrade Logistics Income Fund, confirmed on Tuesday that it is in talks with its rival about a higher offer.
Canexus shares struggled three cents, or 1.9%, to $1.59, while units of Chemtrade faded 19 cents, or 1.1%, to $17.84.
Instinet raised the target price on Canadian Natural Resources to $48.00 from $44.00. Natural Resources shares weakened $1.15, or 2.5%, to $44.70.
Barclays raised the target price on Enerplus to $15.00 from $13.00. Enerplus shares lost 14 cents, or 1.1%, to $13.08.
Dundee raised the target price Teck Resources to $40.00 from $34.00. Teck shares demurred 11 cents to $28.54.
ON BAYSTREET
The TSX Venture Exchange nicked up 1.19 points to 753.49
Among the 12 TSX subgroups, gold soared 1.2%, while materials and consumer staples each gained 0.5%.
The other nine sank like stones, with energy down 1.5%, health-care ailed 0.9%, and information technology clicked 0.8% lower.
ON WALLSTREET
U.S. equities traded mostly lower on Wednesday as investors awaited the Federal Reserve's latest decision regarding monetary policy.
The Dow Jones Industrials backed off from Tuesday’s all-time high 39.74 points to 19,871.47, with Goldman Sachs contributing the most losses.
The S&P 500 dropped 4.26 points to 2,267.46, with financials leading decliners
The NASDAQ composite index gave back 1.69 points to 5,462.14
The Fed is scheduled to release its decision at 2 p.m. ET, with Chair Janet Yellen expected to hold a news conference at 2:30 p.m. ET.
Most market participants are expecting the U.S. central bank to raise rates by 25 basis points, marking just the second time in a decade it will have tightened monetary policy.
In economic news, the Producer Price Index rose 0.4% in November, above the expected 0.1% increase. Meanwhile, November retail sales rose less than expected as households cut back on purchases of motor vehicles. Industrial production fell 0.4%
Treasury prices for the 10-year note gained ground, lowering yields to 2.43% from Tuesday’s 2.48%. Treasury prices and yields move in opposite directions.
Oil prices fell 99 cents to $51.99 U.S. a barrel
Gold prices regained $6.50 to $1,165.50 U.S. an ounce.
