Canada’s main stock index pointed down by noon EST on Wednesday, ahead of the U.S. Federal Reserve’s policy outcome that is likely to signal a quicker end to the central bank’s stimulus measures.
The S&P/TSX Composite let go of 82.81 points midday Wednesday to 20,565.76.
The Canadian dollar slid 0.26 cents at 77.46 cents U.S.
One of the few gainers on the morning had been Blackberry, but which backslid nine cents to $10.97, after it entered into a multi-year agreement with automobile manufacturer BMW to collaborate and develop technology for its next-generation vehicles.
On the economic beat, Statistics Canada reported that Canada’s annual inflation rate remained at 4.7% in November, an 18-year high, amid the continued impact of supply chain disruptions.
As well, the agency reported manufacturing sales rose 4.3% in October, on higher sales of motor vehicles and motor vehicle parts. Excluding these two industries, manufacturing sales increased 1.7%.
Canada Mortgage and Housing Corporation reported Wednesday that housing starts rose to 301,279 units in November, beating analyst expectations of 234,300 starts, and up from a revised 238,366 units in October.
Finally, national home sales rose 0.6% on a month-over-month basis in November, according to the Canadian Real Estate Association.
CBC News is reporting Canada is expected to toughen restrictions on international travel with new measures to be announced on Wednesday as it looks to limit the spread of the Omicron coronavirus variant.
Canada on Tuesday cut its deficit forecast for this fiscal year and pledged new funds to fight the Omicron coronavirus variant, while spending promised in this year’s election campaign would likely be put in a full budget early next year.
ON BAYSTREET
The TSX Venture Exchange faded 16.33 points, or 1.9%, to 861.33.
All but three of the 12 TSX subgroups were lower by lunch time with gold and health-care each down 2.3%, while materials lost 2.2%.
The three gainers were consumer staples, advancing 0.6%, while industrials and utilities each moved forward 0.4%.
ON WALLSTREET
U.S. stocks dipped on Wednesday morning as investors readied for Wednesday’s highly anticipated Federal Reserve decision.
The Dow Jones Industrials remained negative 39.37 points to 35,504.81,
The S&P 500 index lost 17.45 points to 4,616.40.
The NASDAQ faded 148.21 points at 15,089.42.
Energy stocks struggled on Wednesday morning, with Occidental Petroleum falling more than 4%. Eli Lilly rose 7% to lead the S&P 500 after the pharmaceutical company said it expected earnings to rise next year. Boeing was one of the worst performers in the Dow, falling about 2.3%.
The Fed will conclude its two-day policy meeting on Wednesday and the public will hear from central bank Chairman Jerome Powell at a 2:30 p.m. ET news conference.
The Fed is grappling with the highest inflation level in 39 years and the central bank is widely expected to announce an acceleration of the tapering of its bond-buying program, which was put in place during the pandemic to prop up the economy.
One survey predicts the Fed will double the pace of the taper to $30 billion at its December meeting, which would end the $120 billion in monthly asset purchases by about March. The central bank will then hike rates three times in each of the next two years, starting in June 2022, the survey respondents predict.
Retail sales for November came in worse than expected, rising 0.3% month-over-month. Economists surveyed by Dow Jones were looking for a 0.8% month.
Prices for 10-year Treasurys strengthened a bit, lowering yields to Tuesday’s 1.44%. Treasury prices and yields move in opposite directions.
Oil prices dropped 97 cents to $69.76 U.S. a barrel.
Gold prices doffed $4.60 to $1,767.70 U.S. an ounce.