Canadian Stocks Seeing Further Downside Amid Renewed Interest Rate Uncertainty

Extending the pullback seen over the course of the previous session, stocks have moved mostly lower during trading on Wednesday.

The benchmark S&P/TSX Composite Index is down 94.18 points or 0.5 percent at 20,777.96, continuing to give back ground after reaching its best closing level in well over a year a week ago.

Renewed uncertainty about the outlook for U.S. interest rates may be contributing to the weakness on Bay Street ahead of the release of the minutes of the Federal Reserve’s latest monetary policy meeting later in the day.

Treasury yields are seeing further upside ahead of the release of the minutes amid worries Fed officials will signal a more cautious approach to future rate decisions.

Gold stocks are turning in some of the market’s worst performances on the day, dragging the S&P/TSX Global Gold Index down by 2.4 percent.

The weakness among gold stocks comes amid a steep drop by the price of the precious metal, with gold for February delivery tumbling $30.50 or 1.5 percent to $2,042.90 an ounce.

Consumer discretionary, healthcare and technology stocks are also seeing notable weakness, while energy stocks are bucking the downtrend amid a sharp increase by the price of crude oil.

For comments and feedback contact: editorial@rttnews.com

Market Analysis