Baystreet.ca - Canada's main stock index slipped on Wednesday due to falling commodity stocks, as investors evaluated a half-point interest rate cut by the Bank of Canada and anticipated further reductions in the future.
The TSX dropped 143.12 points midday to 24,573.58.
The Canadian dollar backpedaled 0.17 cents to 72.20 cents U.S.
First Quantum Minerals (TSX:FM) beat third-quarter profit estimates on higher sales volumes for copper and gold along with stronger realized gold prices. The miner’s stock hiked 54 cents, or 2.9%, to $18.91.
On the economic calendar, the Bank of Canada did not disappoint Wednesday, cutting its benchmark interest rate by 50 basis points on Wednesday, the fourth consecutive decrease since June, bringing its policy rate to 3.75%.
ON BAYSTREET
The TSX Venture Exchange skidded 13.57 points or 2.2%, to 613.74.
All but two of the 12 TSX subgroups sank below breakeven by noon EDT. Gold dropping 1.6%, while materials and energy each retreated 1.3%.
The two gainers were industrials, up 0.3%, and consumer discretionary stocks, eking ahead 0.1%.
ON WALLSTREET
The Dow Jones Industrial Average continued its decline on Wednesday as Treasury yields rose, reflecting traders’ concerns about higher-for-longer rates.
The 30-stock index plummeted 302 points to pause for lunch at 42,622.89
The S&P 500 fell 39.41 points to 5,811.79.
The NASDAQ stumbled 200.32 points, or 1.1%, to 18,372.81.
On the earnings front, shares of Coca-Cola (NYSE:KO) dipped about 2% even though the company posted a third-quarter beat. Tesla (NASDAQ:TSLA) also dipped roughly 1% ahead of its earnings scheduled for after the closing bell.
Dow member McDonald’s fell more than 5% on Tuesday after the U.S. Centers for Disease Control and Prevention said an E. coli outbreak tied to the fast-food giant’s Quarter Pounder burgers has resulted in 10 hospitalizations and one death.
Prices for the 10-year Treasury lost ground, raising yields to 4.22% from Tuesday’s 4.20%. Treasury prices and yields move in opposite directions.
Oil prices sank 95 cents to $70.79 U.S. a barrel.
Prices for gold fumbled $26.70 an ounce to $2.733.10 U.S.