Stocks Move Back Toward Breakeven
Equities markets in Canada’s largest centre had flattened out by noon Wednesday, as investors awaited clarity on the status of new U.S. tariffs on Chinese goods.
The TSX Composite Index stayed above breakeven 5.87 points to pause for lunch Wednesday at 16,956.57
The Canadian dollar gained 0.19 at 75.75 cents U.S.
The largest percentage gainers on the TSX were mining companies. Turquoise Hill Resources jumped three cents, or 3.8%, to 82 cents and Hudbay Minerals rose 31 cents, or 6.3%, to $5.14.
BRP fell $3.98, or 6.3%, the most on the TSX, to $59.74, after the company announced a $305.9-million secondary offering on a bought-deal basis
The TSX Venture Exchange sank 0.15 points to 536.18
Eight of the 12 subgroups had gone red by noon hour, as real-estate lost 0.8%, health-care fell 0.7%, and consumer staples subsided 0.5%.
The four gainers were led by gold, up 1.8%, materials, ahead 1.1%, and communications, poking up 0.3%.
Stocks rose slightly on Wednesday as investors waited to hear the Federal Reserve’s latest decision on monetary policy.
The Dow Jones Industrials had ventured negative 31.66 points to move into noon hour at 27,850.06, as more than 1% gains in Dow Inc and Johnson & Johnson were offset by a 2% drop in Boeing shares.
The S&P 500 moved up 4.48 points to 3,137.00
The NASDAQ gained 17.53 points to 8,633.72
Boeing shares fell after Federal Aviation Administration Chief Steve Dickson told reporters the re-certification process for the 737 Max will stretched into 2020.
The Fed is largely expected to keep rates unchanged. But Fed Chairman Jerome Powell is also expected to signal the central bank will take appropriate measures to keep liquidity high and overnight lending rates steady to end the year.
The central bank cut rates at its October meeting by 25 basis points for the third time this year. The Fed also signaled the bar for further rate cuts would be high moving forward. Recent economic data could support the Fed keeping rates at current levels in the near future.
Prices for the 10-Year U.S. Treasury enjoyed gains, lowering yields to 1.81% from Tuesday’s 1.84%. Treasury prices and yields move in opposite directions.
Oil prices dropped 63 cents to $58.61 U.S. a barrel.
Gold prices improved $7.30 at $1,475.40 U.S. an ounce.