Cut in Rates in U.S. Weighs on TSX

Equities in Toronto moved lower by the closing bell Wednesday, following a decision by the American central bank to lower interest rates.

The TSX Composite Index tumbled 85.1 points to close Wednesday at 23,592.60.

The Canadian dollar flopped 0.13 to 73.44 cents U.S.

In corporate news, Barrick Gold suspended operations at its Porgera gold mine in Papua New Guinea until Thursday after tribal violence in the region killed at least 20. Barrick shares dipped 49 cents, or 1.8%, to $27.36.

Shares of Rogers Communications fell $1.49, or 2.7%, to $54.00 after the Canadian telecommunication firm said it would buy Bell’s stake in Maple Leaf Sports & Entertainment for $4.7 billion.

In utilities, Capital Power docked 73 cents, or 1.5%, to $47.84, while Superior Plus dropped nine cents, or 1.1%, to $7.84.

In the industrial sector, Boyd Group ditched $6.20, or 2.9%, to $205.99, while Waste Connection slipped $4.62, or 1.9%, to $242.11.

Energy stocks were also tagged, with Arc Resources losing 65 cents, or 2.8%, to $22.74, while Pason Systems slumped 31 cents, or 2.3%, to $13.02.

In health-care Bausch Health Companies shone $1.19 brighter, or 12.2%, to $10.96.

In consumer discretionary stocks, Spin Master gained 95 cents, or 3.2%, to $30.76, while Gildan Activewear hiked 85 cents, or 1.4%, to $62.82.

In real-estate, North West Healthcare Properties REIT units gathered eight cents, or 1.5%, to $5.55, while units of Crombie REIT gained 20 cents, or 1.3%, to $15.76.

In the economic docket, Statistics Canada reported foreign investors increased their exposure to Canadian securities by $11.0 billion in July. Meanwhile, Canadian acquisitions of foreign securities slowed to $4.5 billion, down from a $16.4 billion investment in June.

ON BAYSTREET

The TSX Venture Exchange slipped 6.14 points, or 1.1%, to 576.21.

Seven of the 12 TSX subgroups were lower, with utilities shrinking 0.9%, while industrials and energy each dropping 0.6%.

The five gainers were led by health-care, better by 2.4%, while consumer discretionary and real-estate each poked up 0.2%.

ON WALLSTREET

Stocks closed lower Wednesday in a volatile session as the Federal Reserve lowered interest rates in a half-point percentage move. The outsized rate cut was cheered initially by traders, though it did raise concerns the Fed was trying to get ahead of potential economic weakness.

The Dow Jones Industrials index plummeted 103.08 points to 41,503.10. It was up as much as 375.79 points just after the Fed decision.

The S&P 500 floundered 16.32 points to 5,618.26.

The NASDAQ retreated 54.76 points to 17,573.22.

The Fed lowered its overnight lending rate to a range of 4.75%-5% from 5.25%-5.5%, the first rate cut in four years as inflation levels ease from the levels seen two years ago.

Fed Chair Jerome Powell tried to assuage concerns at a post-meeting press conference that the central bank was cutting aggressively because the Fed sees something troubling about the economy. He hinted it was because the upside risks to inflation have come down so much.

Prices for the 10-year Treasury sagged, lifting yields to 3.71% from Tuesday’s 3.65%. Treasury prices and yields move in opposite directions.

Oil prices faded $1.20 to $69.99 U.S. a barrel.

Gold prices recovered $15.10 to $2,577.30.