Canada's main stock index edged higher on Wednesday, after the Bank of Canada kept interest rates unchanged in line with expectations in the wake of a broad economic slowdown.
The S&P/TSX Composite Index gained 43.27 points to greet noon Wednesday at 16,129.81
The Canadian dollar dropped 0.49 cents at 74.39 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%.
The BoC said there was "increased uncertainty" around the timing of future rate increases as it expects the economy to be weaker in the first half of 2019 than projected in January. What’s more, the central bank made it clear that future rate hike plans are still on the table, but not imminent.
The largest percentage gainer on the TSX was The Stars Group Inc, which jumped $3.03, or 14.5%, to $23.93, after reporting better-than-expected fourth-quarter profit. This was followed by a rise of 27 cents, or 1.3%, to $20.65, in Tourmaline Oil Corp.
Great Canadian Gaming Corp fell $3.87, or 6.9%, to $51.90, the most on the TSX, after reporting fourth-quarter results. The second biggest decliner was Transcontinental Inc, which was down 39 cents, or 2.2%, to $17.60.
Elsewhere 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 swooned 1.76 points to 621.42
All but three of the 12 TSX subgroups were higher, with utilities rising 1%, while communications surged 0.7%, and consumer discretionaries acquired 0.4%.
The three laggards were health-care, down 1.7%, gold, slumping 0.8%, and energy, off 0.4%
ON WALLSTREET
Stocks fell 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 staggered 117.45 to 25,689.18, as Walgreens Boots Alliance lagged.
The S&P 500 faded 10.45 points to 2,779.20, led by declines in energy and health-care.
The NASDAQ Composite let go of 10.45 points to 7,579.20, as Amazon fell 1.1%.
General Electric shares fell more than 4% 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 2.69% from Tuesday’s 2.72%. Treasury prices and yields move in opposite directions.
Oil prices erased 63 cents to $55.93 U.S. a barrel.
Gold prices gained $2.80 to $1,287.50 U.S. an ounce.
