Canada's main stock index fell on Wednesday as investors digested the Bank of Canada's cautious tone, even as the central bank delivered its second consecutive interest rate reduction.
The TSX lost 105.65 points to reach noon EDT Wednesday at 30,314.03
The Canadian dollar was up 0.24 cents at 71.98 cents U.S.
The BoC did as expected, slashing rates by 25 basis points for a second consecutive time, as economists believe the bank needs to support a weak economy under threat from U.S. tariffs. The trendsetting rate is 2.25%.
In a recent post on Truth Social, U.S. President Donald Trump stated he "didn't come to South Korea to see Canada, " highlighting ongoing trade tensions between the North American neighbors.
Prime Minister Mark Carney is also on his first official visit to Asia, attempting to deepen international trade and security ties at a time when Canada is struggling to reduce its dependence on the U.S.
In corporate developments, First Quantum Minerals reported third-quarter adjusted profit below analysts' expectations.
First Quantum shares took on 31 cents, or 1%, to $31.44
ON BAYSTREET
The TSX Venture Exchange added 1.72 points to 957.81.
All but three of the 12 subgroups were lower noon hour, with consumer staples trailing 3.1%, while health-care dumped 1.1%, and industrials stocks paled 1%.
The three gainers were energy, up 1.2%, gold, up 1%, and materials, ahead 0.9%.
ON WALLSTREET
U.S. stocks rose to record levels on Wednesday, boosted by tech names, ahead of the Federal Reserve’s interest rate decision.
The Dow Jones rocketed 272.68 points midday Wednesday to 47,979.05.
The S&P 500 acquired 17.63 points to 6,908.52.
The NASDAQ gained 124.31 points to 23,951.80
All three leading U.S. indexes scored new all-time intraday highs in the trading day.
Investors expect the stock market will keep having its way so long as it’s able to make it through a rapid succession of tests this week.
The Fed is widely expected to cut rates by a quarter point at the conclusion of its meeting Wednesday, but less certain is whether Chair Jerome Powell will strike a dovish tone in his post-meeting comments. Investors are counting on another interest rate cut from the central bank at its December meeting.
The five “Magnificent Seven” companies set to report this week are expected to continue spending on building data centers, but any disappointment from the megacap behemoths could hurt the broader market.
Alphabet, Meta Platforms and Microsoft are set to report after the close on Wednesday. Apple and Amazon post results on Thursday.
Trade tensions between the U.S. and China already appear to have alleviated after progress over the weekend, but investors are now awaiting what comes of President Donald Trump’s meeting with Chinese President Xi Jinping in South Korea.
Prices for the 10-year Treasury slid, raising yields to 4% from Tuesday’s 3.98%. Treasury prices and yields move in opposite directions.
Oil prices gained 73 cents to $60.88 U.S. a barrel.
Gold prices surged $31.40 to $4,014.50 U.S. an ounce.
