Equity markets in Toronto closed Wednesday negative after the Bank of Canada surprised many investors with an interest rate increase, with the move cutting into earlier gains for energy stocks as oil prices rose.
The S&P/TSX Composite Index dove 30.32 points to finish Wednesday at 15,059.83
The Canadian dollar leaped 0.95 cents to 81.8 cents U.S.
Gold stocks showed the most downward pressure, with Goldcorp dropping 50 cents, or 2.9%, to $16.91, while Kinross Gold erased 10 cents, or 1.7%, to $5.71.
In other resource sectors, First Quantum Minerals capsized 23 cents, or 1.6%, to $14.45, while Franco-Nevada dipped $2.34, or 2.3%, to $101.31.
The tech field felt around for the bruises as well, as Descartes Systems Group tailed off 48 cents, or 1.4%, to $34.74, while BlackBerry docked a dime to $11.06.
The energy group hung onto its gains after the rate hike announcement, with Canadian Natural Resources up 77 cents, or 2%, to $40.07, and Encana Corp up nine cents to $11.62.
The reopening of U.S. Gulf Coast refineries helped provide a more bullish outlook for oil after sharp price drops due to Hurricane Harvey, but a second hurricane, Irma, was reported to be approaching the United States.
In the consumer staples field, Alimentation Couche Tard jumped $1.53, or 2.6%, to $60.99 after the convenience store operator reported better-than-expected quarterly earnings.
Economically speaking, the Bank of Canada announced it was raising its target for the overnight rate to 1%. The Bank Rate is correspondingly 1.25% and the deposit rate is 0.75%
Elsewhere, Statistics Canada reported Canada's merchandise trade deficit totaled $3.0 billion in July, narrowing from a $3.8-billion deficit in June. Imports fell 6.0% while exports decreased 4.9%.
ON BAYSTREET
The TSX Venture Exchange ditched 5.7 points by Wednesday’s closing bell to 773.99
All but two of the 12 TSX subgroups were lower on the day, with gold fading 2.5%, materials sliding 1.3%, and information technology slipping 0.7%.
The two gainers were energy, up 1%, and consumer staples, up 0.6%.
ON WALLSTREET
U.S. stocks rose on Wednesday after two top Democratic leaders said President Donald Trump would support a debt ceiling extension and government funding plan.
The Dow Jones Industrials pared gains to remain positive 54.33 points, to 21,807.64, with Home Depot and Chevron contributing the most to the gains. Wednesday's gains follow the Dow's biggest one-day drop since August 17.
The S&P 500 gained 7.69 points to 2,465.54, with energy and consumer discretionary among the best performers. However, shares of United Continental Holdings and Newell Brands were among the worst performers in the S&P 500.
The NASDAQ recovered from a bout of negative numbers and picked up 17.74 points to 6,393.31, as some large-cap tech stocks, like Facebook and Netflix, regained their footing
United cut its unit revenue and pre-tax margin guidance for this quarter, citing Hurricane Harvey. Newell Brands, meanwhile, issued a statement saying "nearly all" of its resin suppliers in Louisiana and Texas are shut down because of Harvey.
Vacation and timeshare stocks also fell Wednesday while investors kept an eye on Category 5 Hurricane Irma. Shares of Hilton Grand Vacationswere down 1.4%, while shares of Marriott also fell around 1%.
Trump will support Senate Minority Leader Chuck Schumer and House Minority Leader Nancy Pelosi's plan to combine raising the debt ceiling with aid for Hurricane Harvey, the two Democrats said.
The rebound came a day after the Dow and the S&P posted their worst sessions since Aug. 17. Stocks pulled back sharply amid rising tension between North Korea and the West.
In economic news, international trade numbers showed the U.S. trade deficit for July came in at $43.7 billion, below the expected $44.7 billion.
The Federal Reserve's Beige Book was also released Wednesday. The report found that the U.S. economy expanded at a modest to moderate pace in July through mid-August but signs of an acceleration in inflation remained slight.
Prices for the benchmark 10-year Treasury note lost strength, raising yields to 2.11% from Tuesday’s 2.07%. Treasury prices and yields move in opposite directions.
Oil prices marched ahead 49 cents to $49.15.
Gold prices dropped $5.70 to $1,338.80 U.S. an ounce.
