Canadian shares hit a near two-month low on Wednesday after the country's top two lenders reported disappointing quarterly earnings, while U.S. debt deal uncertainty also weighed on investor sentiment.
The TSX stayed in the red 170.06 points to observe noon hour EDT at 19.975.95.
The Canadian dollar lost 0.47 cents to 73.60 cents U.S.
Bank of Montreal let go of $3.38, or 3.3%, to $113.55, and Bank of Nova Scotia shed 44 cents to $66.07, after reporting smaller-than-expected quarterly profits as the lenders set aside more emergency funds amid economic uncertainty.
Royal Bank of Canada dropped $1.90, or 1.5%, to $123.98, after the U.K. competition watchdog said it had provisionally found that the bank was among five lenders that had indulged in anti-competitive activity in the past. The lender denied any wrongdoing.
Bucking the trend, Oncolytics Biotech jumped 22 cents, or 9.1%, hitting a four-month high at $2.63, after brokerage JonesTrading initiated coverage with a "buy" rating.
ON BAYSTREET
The TSX Venture Exchange lost 5.61 points to 605.74.
All but one of the TSX subgroups were lower by noon, with materials dropping 1.8%, industrials and financials each subsiding 1.5%.
Only energy stocks gained ground, and only 0.3% at that.
ON WALLSTREET
Stocks fell Wednesday as debt ceiling talks pressed on, and the earliest expected date that the U.S. could default drew nearer.
The Dow Jones Industrials moved even deeper leading up to lunch hour Wednesday dropping 216.62 points to 32,838.89
The S&P 500 waned 30.75 points to 4,114.83.
The NASDAQ tumbled 103.14 points to 12,457.10.
Negotiators from both sides were expected to meet again Wednesday morning, with House Speaker Kevin McCarthy slated to hold a press conference at 11:45 a.m. ET. On Monday, McCarthy had called a discussion with President Joe Biden “productive,” although there were few signs of progress made in negotiations Tuesday.
Treasury Secretary Janet Yellen previously warned lawmakers that a potential default in early June is “highly likely.” She noted Wednesday that she already sees “some stress in financial markets” as concerns mount that the U.S. could see its first default in history.
Even as talks appear at a standstill, many on Wall Street seem hopeful that both sides can reach an agreement before the so-called X-date.
The tail end of earnings season stretched on with Kohl’s jumping more than 7%, and Abercrombie & Fitch popping 27%, after posting surprise profits. Semiconductor giant Nvidia posts results Wednesday after the bell.
Prices for the 10-year Treasury were slightly lower, raising yields to 3.71% from Tuesday’s 3.70%. Treasury prices and yields move in opposite directions.
Oil prices ballooned $1.43 to $74.34 U.S. a barrel.
Gold prices were down $2.70 to $1,971.80 U.S. an ounce.
