Baystreet.ca - Canada's main stock index opened lower on Wednesday, hurt by mining stocks, following the Bank of Canada's monetary policy decision which resulted in an oversized interest rate cut.
The TSX wilted 14 points at the opening bell to 24,702.70.
The Canadian dollar dropped 0.14 cents to 72.24 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 28 cents, or 1.5%, to $18.65.
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 6.82 points or 1.1%, to 620.49.
Seven of the 12 TSX subgroups were ahead of the game in the first hour, with consumer discretionary stocks up 0.5%, while health-care and industrials each grabbed 0.4%.
The five laggards were dragged down by energy, declining 0.7%, gold, sliding 0.6%, and materials, worse off 0.4%.
ON WALLSTREET
The S&P 500 fell Wednesday, putting the benchmark index on track for a third day, as Treasury yields continued their march higher.
The Dow Jones Industrials jettisoned 180.92 points to begin the session at 42,743.97
The much broader index fell 24.68 points to 5,826.52.
The NASDAQ stumbled 137.04 points to 18,436.09.
Dow member McDonald’s fell more than 7% 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. Starbucks (NASDAQ:SBUX) dipped 2% after the coffee chain issued preliminary quarterly results showing that its sales fell again.
Prices for the 10-year Treasury lost ground, raising yields to 4.24% from Tuesday’s 4.20%. Treasury prices and yields move in opposite directions.
Oil prices sank 53 cents to $71.21 U.S. a barrel.
Prices for gold flopped $11.80 an ounce to $2.748 U.S.