Equities in Canada’s largest market opened lower on Wednesday after a two-day rally, with gold miners and technology stocks leading the declines as bond yields rose after U.S. private payrolls data suggested resilient demand for labour.
The TSX Composite dumped 187.81 points, or 1%, to open Wednesday at 19,183.18.
The Canadian dollar slumped 0.87 cents to 73.16 cents U.S.
In individual company news, Link Administration received a bid of A$1.27 billion ($825.37 million U.S.) from Canada's Dye & Durham (D&D) for its corporate markets and banking segments, days after D&D's takeover offer for the entire company fell through.
DND shares fell 44 cents, or 2.7%, to $16.19.
On the economic slate, Statistics Canada announced building permits increased 11.9% in August to $12.5 billion. Both the residential sector (+12.0% to $8.4 billion) and non-residential sector (+11.8% to $4.0 billion) saw strong gains, with Ontario causing much of the increase.
Also in August, Canada's merchandise exports decreased 2.9%, while imports fell 1.7%. As a result, Canada's merchandise trade surplus with the world narrowed from $2.4 billion in July to $1.5 billion in August. This is the lowest monthly trade surplus observed to date in 2022.
ON BAYSTREET
The TSX Venture Exchange stumbled 7.44 points, or 1.2%, to 615.79.
All 12 TSX subgroups lost ground as gold tumbled 2.8%, real-estate slid 2.5%, and materials swooned 2.4%.
ON WALLSTREET
U.S. stocks fell on Wednesday, giving back some of its sharp gains from the last two sessions as Treasury yield rose.
The Dow Jones Industrials descended 305.23 points, or 1%, from Tuesday’s lofty perches to 30,011.09.
The S&P 500 docked 52.66 points, or 1.4%, to 3,738.27.
The NASDAQ Composite dropped 206.51 points, or 1.9%, to 10,969.90.
Bionano Genomics saw its shares jump after the company published a study on using optical genome mapping to investigate liver cancer.
Goldman Sachs slid after Atlantic Equities downgraded both stocks due to the potential of declining investment banking volume.
General Motors shares dipped after Morgan Stanley lowered its price target on the stock.
Private payrolls increased by 208,000, ADP said in its latest report, topping a Dow Jones estimate. Traders are still looking ahead to Friday’s release of the nonfarm payrolls report.
The U.S. trade deficit fell slightly more than expected in August to its lowest level in more than a year, the Bureau of Economic Analysis reported Wednesday.
The trade shortfall declined to $67.4 billion, a $3.1 billion drop from the previous month that was a bit better than the Dow Jones estimate of $67.7 billion. That marked the lowest level since May 2021. In March 2022, the deficit had hit a record $106.9 billion.
Treasury prices moved sharply upward, lowering yields to 3.77% from Tuesday’s 3.64%. Treasury prices and yields move in opposite direction.
Oil prices dipped nine cents to $86.43 U.S. a barrel.
Gold prices faltered $13.10 to $1,717.40 U.S. an ounce.
Stocks Hand Back Nearly 2 Days of Gains
