Canada’s main stock index closed down just 30 points Wednesday as losses in energy and industrials outweighed gains in other areas, while U.S. stock markets were mixed.
The S&P/TSX composite index was down 29.95 points at 20,599.60.
In New York, the Dow Jones industrial average was up 9.88 points at 33,743.84.The S&P 500 index was down 0.73 points at 4,016.22, while the Nasdaq composite was down 20.91 points at 11,313.36.
S&P/TSX composite unchanged Tuesday, U.S. markets mixed
Dog shoots, kills owner in freak accident during hunting trip in Kansas
The Bank of Canada’s rate hike and remarks from the bank sent bond yields and the Canadian dollar downward, said Michael Currie, senior investment adviser at TD Wealth. However, the TSX didn’t make major upward moves in response to the news. Instead, it was dragged down by losses of more than two per cent in the industrials index and more than one per cent in energy.
However, Shopify’s gain of almost 11 per cent helped drag the tech index up on the TSX, noted Currie.
Pink Floyd army comes for anti-LGBTQ2 fans outraged by new ‘rainbow’ logo
Russia warns West of ‘global catastrophe’ for arming Ukraine
Though the Bank of Canada’s 25-basis-point hike Wednesday came as no surprise, the strength of the central bank’s statement was not expected, said Currie.
Bank of Canada governor Tiff Macklem said the central bank would put hikes on pause while it assesses their effects on inflation.
“They’re not saying they will never raise rates again, but … they feel like they’ve done their job,” said Currie.
Market expectations are now leaning toward a potential cut in the fall, said Currie. Now, all eyes will be on the Federal Reserve to see whether its upcoming announcement mirrors the Bank of Canada’s move.
Rail companies took a slide Wednesday, with the Canadian National Railway Company losing almost five per cent and Canadian Pacific Railway Ltd. down almost four cent, dragging down the industrials section of the TSX.
Despite strong earnings, CN predicted a rocky road ahead in 2023, and CP stock was dragged down with its peer’s, Currie said.
Meanwhile in the U.S., Microsoft started the day off with major losses after reporting earnings Tuesday evening, but regained ground throughout the day.
The Canadian dollar traded for 74.67 cents US compared with 74.79 on Tuesday.
The March crude contract was up two cents at US$80.15 per barrel and the March natural gas contract was down 14 cents at US$2.92 per mmBTU.
The February gold contract was up US$7.20 at US$1,942.60 an ounce and the March copper contract was down less than a penny at US$4.24 a pound.
© 2023 The Canadian Press