Canada’s main stock index opened lower on Tuesday, hurt by technology stocks, with investors focusing on the Bank of Canada’s policy decision later this week where a large interest rate cut is expected.
The TSX settled 62.69 points Tuesday to 25,562.73.
The Canadian dollar doffed 0.08 cents to 70.47 cents U.S.
The BoC is widely anticipated to cut policy rate by an outsized half percentage point on Wednesday. The expectations jumped after Friday’s jobs data showed a sharp rise in the country’s unemployment rate.
Though Canada’s inflation remains right within the central bank’s 2% target range, investors have expressed concerns about its dismal economic growth.
In corporate news, food retail and distribution company North West Company missed third-quarter revenue estimates. North West shares tacked on $1.70, or 3.3%, to $53.87,
ON BAYSTREET
The TSX Venture Exchange edged 0.88 points to 615.63.
All but two of the 12 TSX subgroups were negative mid-morning, weighed most by health-care, up 1.4%, communications, ahead 0.9%, and utilities, losing 0.8%.
The lone gainers were gold, up 0.8%, and information technology, nicking up 0.1%.
ON WALLSTREET
Stocks were little changed on Tuesday, as traders digested a year-end rally to record levels while awaiting new U.S. inflation data set for release this week.
The Dow Jones Industrial index slid 4.13 points begin Tuesday at 44,397.88.
The much-broader index regained 12.16 points to 6,065.01
The NASDAQ Composite recovered 102.93 points to 19,839.46
Oracle shares slumped more than 8% after the database software company posted fiscal second-quarter results that missed Wall Street’s estimates. The stock has jumped more than 65% this year.
Investors are now waiting on the U.S. consumer price index report, which is due Wednesday and could influence how the Federal Reserve proceeds on interest rates at its Dec. 17-18 meeting. Economists polled by Dow Jones forecast that headline inflation rose 0.3% in November and 2.7% over the prior 12 months.
Prices for the 10-year Treasury lagged, raising yields to 4.24% from Monday’s 4.20%. Treasury prices and yields move in opposite directions.
Oil prices hiked 28 cents to $68.65 U.S. a barrel.
Prices for gold jumped $23.90 an ounce to $2,709.70 U.S.
