Equity markets in Canada’s biggest centre set to snap a six-day winning streak on Wednesday, as the energy and materials sectors posted some of the biggest losses.
The S&P/TSX Composite was still 12.57 points lower than Tuesday’s all-time closing high, to reach noon Wednesday at 16,822.18
The Canadian dollar docked 0.18 cents at 75.31 cents U.S.
The largest percentage gainers on the TSX were shares of Interfor Corp, which climbed 31 cents, or 2.2%, followed by shares of West Fraser, which rose $2.72, or 5.1%, to $56.04.
CannTrust Holdings fell 14 cents, or 8.2%, the most on the TSX, to $1.56, after Health Canada suspended the company's license to produce and sell cannabis.
On the economic front, Statistics Canada’s consumer price index rose 1.9% on a year-over-year basis in August, following a 2.0% increase in July. On a seasonally adjusted monthly basis, inflation was unchanged last month.
ON BAYSTREET
The TSX Venture Exchange regrouped 0.77 points to 587.67
The 12 Toronto subgroups were evenly divided, as utilities gained 0.4%, while communications and consumer staples each picked up 0.3%.
The half-dozen laggards were weighed most by energy, which sank 1.5%, while consumer discretionary and industrials each backpedaled 0.3%.
ON WALLSTREET
Stateside stocks traded lower on Wednesday as a key policy decision from the Federal Reserve loomed.
The Dow Jones Industrials dropped 71.74 points to 27,039.06
The S&P 500 subtracted 8.16 points to 2,997.54.
The NASDAQ Composite subtracted 29.89 points to 8,156.13.
Even so, the major indexes are within striking distance of record set in July. The Dow and S&P 500 were about 1% from their all-time highs. The NASDAQ was 2.2% below its record.
FedEx slashed its fiscal 2020 earnings guidance. The company also posted weaker-than-expected quarterly results, citing “a weakening global macro environment driven by increasing trade tensions.” FedEx shares dropped 14%.
The Fed is expected to cut rates by 25 basis points. This would be the bank’s second rate cut in a decade, after the central bank decided to lower the Fed Funds Rate to a range of 2.0%-2.25% in July. Chairman Jerome Powell will address the media on Wednesday at 2:30 p.m. ET.
Prices for the benchmark 10-year U.S. Treasury moved up, lowering yields to 1.75% from Tuesday’s 1.81%. Treasury prices and yields move in opposite directions
Oil prices deducted 95 cents to $58.39 U.S. a barrel.
Gold prices gained $4.10 to $1,517.50 U.S. an ounce.
