Canada Stocks: Toronto stocks fall ahead of Fed's interest-rate decision

Aya Gold & Silver (Quebec)

18/09/2024 16:08

(Updated at 10:58 a.m. ET/ 1458 GMT)
    By Nikhil Sharma
       Sept 18 (Reuters) - Canada's main stock index fell on
Wednesday due to losses in energy shares, even as markets braced
for the U.S. Federal Reserve's monetary policy decision due
later in the day.
    The Toronto Stock Exchange's S&P/TSX composite index
 .GSPTSE  was down 105.02 points, or 0.44%, at 23,572.68.
    At the upcoming U.S. Fed's policy decision at 1400 ET,
investors expect the Fed to announce its first interest-rate cut
in more than four years. They will look for clues on the central
bank's future rate trajectory.
    The policy rates are at a more than two-decade high and
traders are betting on a 59% chance for a 50-basis point
reduction and a 41% chance of 25-basis point cut.  0#FEDWATCH 
    Wall Street's main indexes were flat on Wednesday ahead of
the Fed policy decision, providing cues to stocks in Toronto.
 .N 
    "Markets wouldn't be completely shocked by a 50 basis points
move because the overall macro data has been all looking up,"
Shailesh Kshatriya, director, investment strategies at Russell
Investments Canada.
    Lower U.S. interest rates tend to benefit zero-yield gold
and other dollar-denominated commodities, and that could boost
Canada's resource-heavy stock market.
    The TSX has risen 12.6% this year following three rate cuts
by the Bank of Canada as well as hopes of Fed's policy easing.
    Energy companies  .SPTTEN  led losses among sectors with a
1.1% fall tracking oil prices, while TSX's economically
sensitive industrials sector  .GSPTTIN  declined 0.7%.
    Among individual stocks, shares of Rogers Communications
 RCIb.TO  fell 2.6% after the Canadian telecommunication firm
said it would buy Bell's stake in Maple Leaf Sports &
Entertainment for C$4.7 billion ($3.46 billion).
    In oil markets, the West Texas Intermediate crude futures
 CLc1  fell 0.18%, while Brent crude  LCOc1  fell 0.24%  O/R .
Gold prices were up 0.01%.
     

 (Reporting by Nikhil Sharma in Bengaluru; Editing by Leroy Leo)
 ((Nikhil.Sharma@thomsonreuters.com;))