Canada’s primary stock index fell on Wednesday, dragged by technology and financials, as investors evaluated U.S. President Donald Trump’s threat of tariffs on automobiles, semiconductors and pharmaceutical products.
The TSX Composite Index remained negative 84.55 points to pause for lunch Wednesday at 25,564.29.
The Canadian dollar erased 0.18 cents to 70.29 cents U.S.
The minutes from the Fed’s policy meeting are set for release at 2 p.m. ET. The central bank had opted to leave interest rates unchanged at the
meeting, with Chair Jerome Powell indicating that they would only cut the rates if inflation and employment data warranted such action.
On Tuesday, Trump said he intends to impose auto tariffs “in the neighborhood of 25%,” along with similar duties on semiconductor and pharmaceutical imports.
In corporate news, Loblaw on Wednesday said it plans to invest $2.2 billion to renovate existing stores, open new ones and create about 8,000 jobs this year. Loblaw shares handed back $1.11 to $177.97.
Hudbay Minerals slumped $2.13, or 16.8%, to $10.57, after the copper miner posted lower fourth-quarter profit.
ON BAYSTREET
The TSX Venture Exchange dipped 2.96 points to 639.94.
Seven of the 12 subgroups were lower in the early afternoon,
Only energy stood out amid the gloom, gaining 0.6%.
ON WALLSTREET
Stocks were little changed on Wednesday, but the S&P 500 managed to climb to a fresh record.
The Dow Jones Industrials remained in the red 90.77 points midday to 44,465.62
The S&P 500 index moved higher 4.55 points to 6,134.13
The tech-heavy NASDAQ regained 9.9 points to 20,051.16
Home Depot and Sherwin-Williams led the Dow declines, dropping more than 1% each. Materials were the worst-performing sector in the S&P 500, losing 1%.
The S&P 500 energy sector bucked the trend with a gain of 1.4%. The broad market index on Tuesday climbed to an all-time high, even as concerns around sticky inflation and President Donald Trump’s trade policies persist. The benchmark hit an intraday record of 6,129.63 and earned a record close at 6,129.58.
Trump Tuesday floated the notion of imposing a 25% tariff on imported autos, chips and pharmaceuticals. Trump did not specify whether or not the potential duties would be targeted or broad, but did say they could be implemented as soon as April 2.
Investors will look through the minutes from the latest Federal Reserve meeting, set for release at 2 p.m. ET. The Fed kept rates unchanged but expressed concern over the U.S. inflation outlook.
Prices for the 10-year Treasury gave up gained, raising yields back to Tuesday’s 4.55%. Treasury prices and yields move in opposite
directions.
Oil prices progressed 65 cents to $72.50 U.S. a barrel.
Prices for gold sank four dollars an ounce to $2,945 U.S.
