Equities in Toronto extended losses on Wednesday after two top lenders reported disappointing quarterly earnings, while U.S. debt deal uncertainty also weighed on investor sentiment.
The TSX maintained its downward trend, handing over 225.22 points, or 1.1%, to begin mid-week trading at 19.920.79.
The Canadian dollar lost 0.32 cents to 73.74 cents U.S.
Bank of Montreal and Bank of Nova Scotia reported lower adjusted earnings at home as the lenders set aside more rainy-day funds amid economic uncertainty. U.S.-listed shares of the banks were down before the bell.
BMO shares tumbled $4.05, or 3.5%, to $113.38, while those for Scotiabank gave back $1.07, or 1.6%, to $65.44.
ON BAYSTREET
The TSX Venture Exchange lost 4.91 points to 606.44.
All but one of the TSX subgroups were lower in the first hour, with health-care and financials sliding 1.6% each, while materials dropped 1.4%.
Only consumer staples gained ground, eking up only 0.03%.
ON WALLSTREET
Stocks fell Wednesday as debt ceiling talks pressed on, and the earliest expected date that the U.S. could default drew nearer.
The Dow Jones Industrials skidded even more just past Wednesday’s opening bell, dropping 201.17 points to 32,854.34.
The S&P 500 dropped 32.3 points to 4,113.28.
The NASDAQ hesitated 104.7 points to 12,455.54.
Negotiators for both sides are expected to meet again Wednesday morning, according to Reuters.
Treasury Secretary Janet Yellen previously warned lawmakers that a potential default in early June is “highly likely.” While House Speaker Kevin McCarthy said he had a “productive” discussion with President Joe Biden Monday, there were few signs of progress made in negotiations Tuesday.
On the economic front, investors await minutes from the Federal Reserve’s meeting earlier this month slated for release Wednesday afternoon.
The tail end of earnings season stretched on with Kohl’s and Abercrombie & Fitch popped more than 12% and 21%, respectively, after posting surprise profits. Semiconductor giant Nvidia post results Wednesday after the bell.
Prices for the 10-year Treasury were unchanged, keeping yields at Tuesday’s 3.70%.
Oil prices added $1.21 to $74.12 U.S. a barrel.
Gold prices were down $2.70 to $1,971.80 U.S. an ounce.