Equities in Canada’s largest centre poked higher Wednesday as investors digested the decision by the Bank of Canada on interest rates.
The TSX Composite regained 49.76 points mid-morning, to 20,856.39.
The Canadian dollar subtracted 0.19 cents to 78.89 cents U.S.
Billionaire Chris Hohn's TCI Fund Management said on Tuesday it intends to nominate directors to replace about half of Canadian National's board after its costly attempts to buy Kansas City Southern were dealt a blow by the U.S. regulator.
CN shares docked $1.06 to $154.45.
KSU shares took on $1.60 to $289.17 in early trading Wednesday in New York.
The Bank of Canada today held its target for the overnight rate at the effective lower bound of 0.25%, with the Bank Rate at 0.5% and the deposit rate at 0.25%.
Elsewhere, Western University’s IVEY School of Business reported its Purchasing Managers Index leaped to 66, towering over July’s 56.4, but down from the 67.8 reading in August 2020.
ON BAYSTREET
The TSX Venture Exchange slumped 8.11 points to 905.38.
Eight of the 12 TSX subgroups were higher soon after the opening bell, with energy rumbling 1.2%, utilities brighter by 0.9%, and real-estate 0.6% more solid.
The four laggards were weighed most by health-care, down 1.1%, while materials and information technology each fell 0.3%.
ON WALLSTREET
The S&P 500 was steady on Wednesday, with the average still flat for the month of September, as investors reassess the economic growth outlook following a smooth ride in the market so far this year.
The Dow Jones Industrials slid 45.36 points to 35,054.64
The S&P 500 retreated 8.52 points to 4,511.51
The NASDAQ Composite plummeted from Tuesday’s all-time high, by 78.96 points to 15,295.37.
Many investors are bracing for volatility in September, one of the seasonally weakest months of the year. Price swings could make a comeback, especially with the S&P 500 up more than 20% this year without a single 5% pullback.
One of the catalysts for a selloff could be the Federal Reserve and the potential for it to pull back an unprecedented monetary stimulus to support the economy throughout the pandemic. Fed Chairman Jerome Powell has indicated that the central bank is likely to begin withdrawing some of its easy-money policies before year-end, though he still sees interest rate hikes in the distance.
On Wednesday, the Labor Department released the Job Openings and Labor Turnover Survey, which showed job openings rose to a record 10.9 million in July.
Meanwhile, the Federal Reserve is set to publish its periodic “Beige Book” survey of activity across its 12 districts.
Prices for 10-Year Treasurys gained, lowering yields to 1.35% from Tuesday’s 1.37%. Treasury prices and yields move in opposite directions.
Oil prices hiked 94 cents to $69.29 U.S. a barrel.
Gold prices dipped $7.10 to $1,791.40 U.S. an ounce.
