Stocks in Canada followed their American cousins in a southerly direction Wednesday, after the U.S. Federal Reserve finally played its hand and raised interest rates
The TSX Composite let go of 240.7 points, or 1.2%, to close Wednesday at 19,277.01.
The Canadian dollar parted ways with 0.45 cents to 72.97 cents U.S.
Canada Goose fell $1.88, or 8.4%, to $20.47 after the luxury parka maker cut its full-year revenue and profit forecast, with persistent COVID-related lockdowns and store closures in China hurting its business.
Ero Copper fell $2.56, or 15.5%, to close the day at $13.97, after the copper miner’s third-quarter profit missed analysts’ estimates.
Cenovus Energy recovered 12 cents to $28.05 after reporting a nearly three-fold jump in third-quarter profit.
Gold stocks got pummeled the worst, with Eldorado Gold surrendering 48 cents, or 5.6%, to $7.85, while Iamgold Corp. lost 12 cents, or 5.9%, to $1.91.
Cannabis concerns were off on the day, as Cronos Group slid 35 cents, or 7.9%, to $4.07, while Canopy Growth dumped 24 cents, or 5.1%, to $4.51.
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.
ON BAYSTREET
The TSX Venture Exchange fell 10.48 points, or 1.8%, to 587.76.
Seven of the 12 TSX subgroups were negative, with health-care leaning lower 2.9%, health-care down 1.8%, and materials slipping 1.1%.
The five gainers were led by utilities, up 0.5%, while industrial and financial stocks each climbed 0.3%.
ON WALLSTREET
Stocks fell on Wednesday in wild action as traders tried to interpret the Federal Reserve’s next move after it delivered another widely expected three-quarter-point interest rate hike.
The Dow Jones Industrials fell 504.98 points, or 1.6%, to end Wednesday at 32,148.22.
The S&P 500 toppled 96.42 points, or 2.5%, to 3,759.68.
The NASDAQ free-fell 366.05 points, or 3.4%, to 10,524.80, dragged down by popular technology stocks.
The Fed implemented another 0.75-percentage-point rate increase Wednesday afternoon and Fed Chair Jerome Powell said in a press conference that its inflation fight was far from done.
Treasury prices slipped, raising yields to 4.08% from Tuesday’s 4.05%. Treasury prices and yields move in opposite directions.
Oil prices gathered 89 cents to $89.26 U.S. a barrel.
Gold prices tumbled $11.10 to $1,638.50 U.S. an ounce.