(MENAFN- ProactiveInvestors - N.America) Canadian shares dropped as banks and material producers retreated with investors eyeing hints the U.S. Federal Reserve will keep interest rates low.
The Standard & Poor's/TSX Composite Index (TSE:OSPTX) skidded 0.6 percent to 14,539.07 at 12:05 p.m. in Toronto. Five shares declined for every four stocks that advanced as 7 out of 10 main industries retreated.
Fed policy makers wrap up a two-day meeting today after six weeks of volatility in global financial markets. Sentiment in Canada is often influenced by news out of the United States, Canada's largest trading partner.
Raw-material shares tumbled 1.4 percent as gold futures fell to a two-week low.
Barrick Gold (TSE:ABX) fell 3.2 percent to C$14.62. Goldcorp (TSE:G) gave back 2.7 percent to C$24.41.
Gold futures for December delivery fell 0.4 percent to $1,224.90 an ounce at 10:26 a.m. on the Comex in New York.
Cameco (TSE:CCO), the country's largest uranium producer, fell 2.6 percent to C$19.06 after cutting its full-year revenue forecast because its trading unit will now sell less of the nuclear fuel than previously expected.
Teck Resources (TSE:TCK.B) advanced 2.7 percent to C$18.32 after the miner reported a better-than-expected adjusted profit in the third quarter.
Financials, the index's most heavily weighted sector, slid 0.6 percent. Royal Bank of Canada (TSE:RY), which has the heaviest weighting in the index, fell 1 percent to C$78.70. Toronto-Dominion Bank (TSE:TD), the second-largest bank, lost 1 percent to C$54.24.
The energy sector, the main index's second most heavily weighted group, climbed 1 percent as West Texas Intermediate gained for a second day. Suncor Energy Inc. (TSE:SU), the nation's largest energy company by market value, added 0.8 percent to C$39.31. Enbridge (TSE:ENB), Canada's largest pipeline company, slipped 0.3 percent to C$53.09.
MEG Energy (TSE:MEG) gained 1.6 percent to C$28.59 even as the oil sands producer, reported weaker-than-expected revenue for the third quarter.
WTI for December delivery rose 1.6 percent to $82.73 a barrel at 11:26 a.m. on the New York Mercantile Exchange.
Wi-LAN (TSE:WIN) inched up 0.8 percent after the intellectual property licensing company reported higher-than-expected revenue in the third quarter helped by recent license signings.
The junior S&P/TSX Venture Composite Index (CVE:OSPVX) edged up 0.2 percent to 789.56 at 12:10 p.m. Storm Resources (CVE:SRX), the heaviest stock in the gauge, surrendered 1 percent to C$5.05.
In the U.S. market, shares were steady as investors bet the Federal Reserve will be in no hurry to raise interest rates even as it ends monthly bond purchases. The S&P 500 (INDEXSP:.INX) and the 30-company Dow Jones Industrial Average (INDEXDJX:.DJI) were little changed at 11:31 a.m. in New York. The tech-heavy Nasdaq Composite (INDEXNASDAQ:.IXIC) fell 0.4 percent. Most followed shares included Facebook, Gilead Sciences, WellPoint, Ford Motor, Ralph Lauren, Waste Management, Hershey, American Realty Capital, U.S. Steel, and Electronic Arts.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.