Canada's main stock index opened flat on Wednesday, as investors digested the decision on interest rates from the Bank of Canada.
The S&P/TSX Composite Index tacked on 18.44 points to kick off Wednesday’s session at 16,104.98
The Canadian dollar dropped 0.15 cents at 74.72 cents U.S.
The central bank, as expected, held rates steady at 1.75%, with a majority of analysts anticipating another hike later this year, even as recent data has clouded the outlook and could force a more dovish tone.
The Bank Rate is correspondingly 2% and the deposit rate is 1.5%.
Centerra Gold’s CEO said his company is likely to reinstate its dividend after it closes a deal with Kyrgyzstan to resolve a longstanding dispute over the Kumtor gold mine.
Centerra shares backtracked nine cents, or 1.4%, to $6.46.
RBC cut the price target on Great Canadian Gaming to $64.00 from $67.00. Gaming shares dropped $5.56, or 10.2%, to $50.11.
BMO raised the price target on MAG Silver to $17.50 from $16.50. MAG shares eased back five cents, or nearly 1%, to $5.11.
Raymond James raised the price target Cardinal Energy to $4.25 from $3.75. Cardinal lost seven cents, or 3.1%, to $2.20.
On the economic calendar, Statistics Canada reported that Canada's exports declined 3.8% in December, mainly due to lower crude oil prices, while imports were up 1.6%.
As a result, our country's merchandise trade deficit with the world widened from $2.0 billion in November to a record $4.6 billion in December.
Western University’s IVEY School of Business said its Purchasing Managers Index measured 50.6 in February, down sharply from the 54.7 issued in January, and well off the 59.6 level in February 2018
ON BAYSTREET
The TSX Venture Exchange inched up 0.4 points to 623.58
All but three of the 12 TSX subgroups were higher, with utilities rising 0.5%, while financials and consumer discretionaries each attained 0.2%.
The three laggards were energy, down 0.9%, gold, off 0.5%, and materials, edging back 0.03%.
ON WALLSTREET
Stocks were little changed on Wednesday as investors sought further indications that a trade deal between China and the U.S. could be reached in the near future.
The Dow Jones Industrial Average dipped 4.63 to 25,802,
The S&P 500 faded 4.44 points to 2,785.21
The NASDAQ Composite let go of 8.51 points to 7,567.85
General Electric shares fell more than 7% after J.P. Morgan analyst Stephen Tusa said in a note the company's stock is overvalued given the hurdles it faces over the next two years. Tusa kept his price target at $6 per share, noting that "looks generous" at this time.
Investors also digested key economic data on Wednesday. ADP and Moody's Analytics said private payrolls rose by 183,000 in February.
Economists polled by Dow Jones had forecast a gain of 185,000. January payrolls were revised higher by 87,000 to 300,000.
Meanwhile, the U.S. trade deficit increased to a 10-year high of $59.8 billion despite the administration's efforts to reduce the number. Economists expected the number to increase to $57.3 billion.
News sources have reported that President Donald Trump wants the U.S. and China to strike a deal in hopes of boosting stock prices ahead of the 2020 election. The sources said Trump thinks getting a deal on trade would accomplish that.
Earlier this week, sources told media outlets the U.S. and China were in the "final stages" of trade talks, with the two sides planning a Mar-a-Lago summit for the end of the month. U.S. Secretary of State Mike Pompeo also said Monday he thought Washington and Beijing were "on the cusp" of reaching a deal.
Prices for the benchmark 10-year U.S. Treasury eked ahead, dropping yields to 2.71% from Tuesday’s 2.72%. Treasury prices and yields move in opposite directions.
Oil prices erased 64 cents to $55.92 U.S. a barrel.
Gold prices gained $1.90 to $1,286.60 U.S. an ounce.
