🚀 ProPicks AI Hits +34.9% Return!Read Now

TSX Declines; Enbridge Shares Slide; Bank of Canada Pauses Holds Rates Steady

Published 2023-09-06, 02:40 p/m
© Reuters.
GSPTSE
-

By Ketki Saxena

Investing.com -- Canada's main stock index, the S&P/TSX Composite index tracked Wall Street lower as hotter-than-expected US services sector data fanned worries of sticky inflation and raised bets on the US Federal Reserve needing to keep interest rates higher for longer.

The TSX meanwhile was pressured by financials, after the Bank of Canada left its key overnight interest rate on hold at 5.00% - but reiterated that it remained prepared to hike rates further if needed.

The commodity-heavy Canadian index was also pressured by crude prices, which retreated from 10 month highs after the announced extension of OPEC+ oil cuts, as Fed fears and a stronger dollar weighed.

Canadian Stock Markets News

Enbridge Inc (TSX:ENB) announced that it will be purchasing three utilities from Dominion Energy Inc. in a US$9.4 billion deal, which, when completed will create North America’s largest natural gas provider. “The assets we are acquiring have long useful lives and natural gas utilities are ‘must-have’ infrastructure for providing safe, reliable and affordable energy,” Enbridge Chief Executive Officer Greg Ebel said in the statement.

Canadian Stocks Moving Markets Today

Top Gainers on the TSX Today: 

  • Parkland (TSX:PKI) Fuel
  • Brookfield Business (TSX:BBUC)
  • Filo Mining (TSX:FIL)

Top Losers on the TSX Today:

  • Enbridge Inc (TSX:ENB)
  • Tilray (TSX:TLRY)
  • Northland Power (TSX:NPI)

In Canadian Economics

The Bank of Canada held its overnight lending rate steady at 5%, citing signs of a weakening economy and cooling labour market as the rationale for keeping rates steady.

“With recent evidence that excess demand in the economy is easing, and given the lagged effects of monetary policy, Governing Council decided to hold,” the bank said in a statement accompanying the announcement.

However, the Bank also warned that the "Governing Council remains concerned about the persistence of underlying inflationary pressures, and is prepared to increase the policy interest rate further if needed."

In separate news, Statistics Canada reported that the country posted a trade deficit of $987 million for July compared with a revised deficit of $4.9 billion in June. Total imports fell 5.4%, while total exports rose 0.7%

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.