Canada’s main stock index opened lower on Wednesday, dragged down by healthcare and energy stocks, as investors awaited U.S. Federal Reserve’s interest rate decision later in the day.
The TSX Composite lost 6.69 points, to open the midweek session at 19,511.02.
The Canadian dollar gave back 0.06 cents to 73.36 cents U.S.
Among individual shares, Cenovus Energy reported a nearly three-fold jump in its third-quarter profit, benefiting from higher energy prices due to rising demand as global supplies were hit by Russia’s invasion of Ukraine.
Cenovus shares backpedaled 83 cents, or 3%, to $27.10.
Canada Goose Holdings trimmed its full-year revenue and profit forecast as COVID-19-related restrictions weigh down on its luxury parka sales in China. Canada Goose shares skidded 38 cents, or 1.7%, to $21.97.
Meanwhile, the Bank of Canada has not ruled out another oversized rate hike to fight sky-high inflation, Governor Tiff Macklem said on Tuesday.
The BoC surprised the market with a smaller-than-expected 50-bps hike last week.
The TSX Venture Exchange fell 1.64 points to 596.60.
The 12 TSX subgroups were split evenly, with information technology leading gainers, up 0.9%, while consumer staples and financials each added 0.4%.
The half-dozen laggards were weighed most by energy, staggering 1.6%, health-care, bowing 0.7%, and materials, lower by 0.6%.
Stocks fell Wednesday as investors braced for the Federal Reserve’s latest rate decision at the conclusion of its policy meeting.
The Dow Jones Industrials flopped 140.79 points to begin Wednesday trading at 32,512.41.
The S&P 500 sagged 23.95 points to 3,832.15.
The NASDAQ dropped 76.48 points to 10,814.36.
The Fed is widely expected to announce a 0.75-percentage-point rate increase, its fourth hike in a row of that caliber, as it battles high inflation. Investors are also looking for a signal that the central bank is prepared to slow the pace of its rate-hiking plan come December.
Comments from the Fed and Chair Jerome Powell will play a key role in deciphering where stocks go in the months ahead and whether markets kick off a fresh bull run.
Earnings season continued with strong results from CVS Health. Advanced Micro Devices rose despite a top and bottom line miss.
Treasury prices gained a slight bit of ground, lowering yields to 4.04% from Tuesday’s 4.05%. Treasury prices and yields move in opposite directions.
Oil prices subtracted 20 cents to $88.17 U.S. a barrel.
Gold prices gained $3.70 to $1,653.40 U.S. an ounce.