Canada's main stock index slid somewhat by midday Wednesday, even as signs of more stimulus and improving economic data raised hopes for a sooner-than-expected recovery from the coronavirus-induced recession.
The S&P/TSX Composite Index let go of early morning gains, to trail Tuesday’s close by Wednesday noon by 46.65 points to 15,469.18.
The Canadian dollar docked 0.15 cents at 73.86 cents U.S.
The largest percentage gainers on the TSX were Centerra Gold, which jumped 51 cents, or 3.8% to $13.79, followed by AltaGas that rose 21 cents, or 1.3% to $15.99, after RBC lifted rating on the stock to "outperform" and raised its Price Target by $2.00 to $21.00
Hexo Corp fell 11 cents, or 8.7%, to $1.15, the most on the TSX, after the pot producer announced plans to raise equity.
The second biggest decliner was Shawcor, down 13 cents, or 3.8%, to $3.27.
On the economic beat, Statistics Canada reported the consumer price index fell 0.4% on a year-over-year basis in May, down from a 0.2% decline in April.
On a seasonally-adjusted monthly basis, the agency said the CPI increased 0.1% in May, following a 0.7% decline in April.
Bank of Canada Governor Tiff Macklem's assurance to support the nation's economic recovery using policy tools further bolstered investor sentiment.
ON BAYSTREET
The TSX Venture Exchange fell 1.82 points to 560.64.
Eight of the 12 TSX subgroups were negative by noon EDT, with energy fading 3.2%, real-estate off 1.1%, and communications going south 1%.
The four gainers were led by gold, surging 0.7%, materials, improving 0.6%, and information technology, up 0.5%.
ON WALLSTREET
Stocks struggled for direction on Wednesday following a big rally in the previous session that was fueled by a growing belief the worst may be over for the world’s largest economy.
The Dow Jones Industrials slipped 29.16 points to 26,260.82.
The S&P 500 faded 0.71 points to 3,124.03.
The NASDAQ gained 41.9 points to 9,937.77.
Airlines, cruise operators and retail — all groups that would benefit from the economy reopening — were under pressure on Wednesday.
United, Delta and American Airlines all fell more than 3%. Carnival slid 7.1%, Norwegian Cruise Line gave up 7.8%, and Royal Caribbean doffed 8.4%. Nordstrom fell 3.3% and Gap lost 4.2%.
Federal Reserve Chairman Jerome Powell was set to testify before House members on Wednesday. In front of the Senate Banking Committee on Tuesday, Powell warned of “significant uncertainty” about the economic recovery, adding small businesses are at risk following the pandemic.
Meanwhile, concerns about the coronavirus linger. Multiple reports said Beijing will shut down all schools amid a resurgence in coronavirus cases. In the U.S., more than 2.1 million cases have been confirmed, with states such as Arizona and Texas reporting a spike in cases.
Prices for the 10-Year Treasury dropped, boosting yields to 0.74% from Tuesday’s 0.75%. Treasury prices and yields move in opposite directions.
Oil prices skidded 47 cents to $37.91 U.S. a barrel.
Gold prices fell $3.90 to $1,732.60 U.S. an ounce.
