TSX extends losses after BoC cuts growth forecasts
Reuters
Published Oct 30, 2019 10:34
TSX extends losses after BoC cuts growth forecasts
(Reuters) - Canada's main stock index fell further on Wednesday, after the central bank maintained its key overnight interest rates as expected but cut domestic and global growth forecasts.
At 10:04 a.m. ET (1404 GMT), the Toronto Stock Exchange's S&P/TSX Composite index was down 44.6 points, or 0.27%, at 16,373.54.
The Bank of Canada maintained its key overnight interest rate at 1.75% but cut growth forecasts, saying the Canadian economy would be increasingly tested by trade conflicts.
The central bank said Canada's economy would shrink by about 4.5% by 2021 if a global slowdown became more pronounced because of a higher-than-expected degree of uncertainty.
Investors now await a decision from the U.S. Federal Reserve, which is widely expected to cut rates for the third time this year. The policy statement is due at 2 p.m. EDT (1800 GMT).
Seven of the index's 11 major sectors were trading lower.
The energy sector dropped 0.7% as oil prices fell on worries about a possible delay in resolving the U.S.-China trade war. [O/R]
U.S. crude prices were down 0.5%, while Brent crude lost 0.2%. [O/R]
The financials sector slipped 0.4%, while the industrials sector fell 0.3%.
On the TSX, 100 issues were higher, while 126 issues declined for a 1.26-to-1 ratio to the downside, with 21.73 million shares traded.
The largest percentage gainer on the TSX was Wesdome Gold Mines (TO:WDO), which jumped 5.9% after the company announced exploration drilling at the Eagle River mine.
Maple Leaf Foods (TO:MFI) fell 10.4%, the most on the TSX, after the packaged meat producer missed quarterly earnings expectations.
The most heavily traded shares by volume were Zenabis Global Inc (TO:ZENA), Supreme Cannabis Company (TO:FIRE) and Aurora Cannabis (TO:ACB).
The TSX posted no new 52-week high and one new low.
Across all Canadian issues, there were 11 new 52-week highs and 10 new lows, with total volume of 37.40 million shares.
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Written By: Reuters
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