TSX Climbs Down from Record by Noon
Canada's main stock index slipped on Wednesday, pulling back from the previous session's record high, as investors awaited the outcome of a crucial debate on a sweeping U.S. tax bill and further trade developments.
The TSX Composite Index came down from Tuesday’s all-time high 155.04 points to pause for noon hour EDT Wednesday at 25,900.59.
The Canadian dollar recovered 0.39 cents at 72.28 cents U.S.
Canada's big banks are bracing for trade uncertainty and are expected to have shored up loan loss reserves in the second quarter, with four of the big six banks putting aside over $1 billion.
Markets are also monitoring the Group of Seven finance ministers' meetings currently underway in Canada for any hints that a weaker dollar could help advance trade negotiations.
In corporate news, Brookfield has received a binding bid for its student accommodation platform Livensa from Spain's Bankinter, for what would be one of the largest deals in the sector in recent years. Brookfield shares lost $1.68, or 2.1%, to $80.42.
Elsewhere, Canada Goose's shares jumped $3.31, or 26.7%, to $15.73, after the luxury retailer reported strong quarterly sales.
On the economic slate, Statistics Canada’s new housing price index for April declined 0.4%, compared to an unchanged reading in March.
ON BAYSTREET
The TSX Venture Exchange slid 4.46 points to 688.28.
All but two of the 12 subgroups were in the red Wednesday, with consumer discretionary and real-estate sagging 0.8% each, and consumer staples off 0.7%.
Materials crept up 0.3%, while gold was but 0.1% brighter.
ON WALLSTREET
Stocks fell Wednesday as traders fretted over another move higher in Treasury yields and monitored the progress on a new U.S. budget bill that could put pressure on the country’s deficit.
The Dow Jones Industrials tumbled 314.01 points to 42,363.23.
The S&P 500 fell 6.29 points to 5,934.17.
The NASDAQ Composite regained 91.52 points to 19,234.24.
UnitedHealth was the worst-performing Dow member, losing more than 5% after a downgrade from HSBC. Major tech-related stocks Apple and Amazon dropped more than 1% as rates increased.
The latest moves come as traders look to Washington as Republican leaders work to finalize a budget bill that would lower taxes. However, the measure has faced pressure from GOP members looking for higher deductions on state and local taxes. Investors also worry the measure could worsen the U.S. deficit.
Prices for the 10-year Treasury subsided Wednesday, lifting yields to 4.54% from Tuesday’s 4.48%. Treasury prices and yields move in opposite directions.
Oil prices dipped 25 cents to $61.78 U.S. a barrel.
Prices for gold hiked $29.20 to $3,313.80.
