Equities were pretty much unchanged at the open on Wednesday ahead of the U.S. Federal Reserve’s policy decision, while data showed domestic inflation numbers edged higher in February.
The TSX acquired 17.88 points to begin trading Wednesday at 18,891.89
The Canadian dollar demurred 0.18 cents to 80.18 cents U.S.
The Bank of Canada is likely to reduce its bond purchases as soon as next month, strategists say, which would provide the clearest signal yet that Canada’s economy requires less help to emerge from the coronavirus crisis.
The largest percentage gainers on the TSX were Westshore Terminals Investment, which jumped $1.64, or 8.8%, to $20.31, after the marine port service provider announced dividend, and oil producer MEG Energy, which rose 21 cents, or 3%, to $7.17.
IT services provider Lightspeed POS fell $2.68, or 3.1%, the most on the TSX, to $85.07, while the second biggest decliner was renewable energy firm Boralex, down 65 cents, or 1.1%, to $39.64.
Canaccord Genuity raised the price target on Airboss of America to $51.00 from $29.00. Airboss was airborne three dollars, or 9.7%, to $33.98.
Canaccord Genuity cut the rating on Battle North Gold to sell from speculative buy. Battle North eked lower half a cent, or 0.2%, to $2.61.
Canaccord Genuity start coverage on Waterloo Brewing with buy rating and a price target of $8.50. Waterloo zoomed 45 cents, or 8.1%, to $6.03.
On the economic slate, Statistics Canada reported February’s consumer price index was up 1.1% on a year-over-year basis in February, up from a 1% increase in January. On a seasonally-adjusted monthly basis, the CPI rose 0.1% in February.
ON BAYSTREET
The TSX Venture Exchange backtracked 3.4 points to 974.47.
Seven of the 12 TSX subgroups were negative to start the session, with consumer staples down 0.8%, while information technology and gold were each off 0.6%.
The five gainers were led by energy and financials, each pointing up 0.5%, while consumer discretionary stocks eked up 0.1%.
ON WALLSTREET
U.S. stocks fell Wednesday as investors await the outcome from the Federal Reserve’s two-day policy meeting and comments from Fed Chair Jerome Powell later in the day.
The Dow Jones Industrials gained 14.2 points to kick off the session at 32,840.15
The S&P dipped 13.18 points to 3,949.53
The NASDAQ Composite slumbered 84.92 points to 13,386.64.
Apple, Alphabet, Facebook and Netflix all traded in the red. Tesla shed more than 2%.
A strong vaccine rollout and the easing of state lockdown restrictions have also boosted reopening stocks.
Boeing rose 1.2%, while Carnival and Norwegian Cruise Line both traded up more than 1%. Shares of McDonald’s climbed 1% after Deutsche Bank upgraded the stock to buy from hold.
On Wednesday, the Fed will release new economic and interest rate forecasts, which could indicate Fed officials expect to raise rates by, or even before, 2023. The central bank is expected to acknowledge stronger growth, which should put the Fed’s easy policies in the spotlight, especially given the new $1.9 trillion in federal stimulus spending.
Investors will also hear from Fed Chair Powell, who is likely to move the stock and bond markets with his commentary, despite being unlikely to offer specifics.
Prices for 10-Year Treasurys were lower, raising yields to 1.65% from Tuesday’s 1.62%. Treasury prices and yields move in opposite directions.
Oil prices gave up 35 cents to $64.45 U.S. a barrel.
Gold prices dulled $3.40 to $1,727.50.