(RTTNews) - The Canadian market ended weak on Wednesday, hurt by losses in technology, energy and materials stocks. Despite the Bank of Canada's decision to cut interest rates by 50 basis points, the mood in the market remained bearish amid concerns about the outlook for economic growth and due to persisting Middle East tensions.
The benchmark S&P/TSX Composite Index ended down 143.08 points or 0.58% at 24,573.62, about 20 points off the day's low of 24,453.40. The index remained in negative territory right through the day's session.
The Canadian central bank cut rates by a half point today, as widely expected, reducing its target for the overnight rate by 50 basis points to 3.75%, with the Bank Rate at 4% and the deposit rate at 3.75%.
The Canadian central bank's decision to continue lowering rates came as consumer price inflation has declined significantly from 2.7% in June to 1.6% in September.
"With inflation now back around the 2% target, Governing Council decided to reduce the policy rate by 50 basis points to support economic growth and keep inflation close to the middle of the 1% to 3% range," the bank said its statement.
The central bank also said it expects to further reduce rates if the economy evolves broadly in line with its forecast but noted the timing and pace of future rate cuts will be guided by incoming information and its implications for the inflation outlook.
"We will take decisions one meeting at a time," Bank of Canada said, stressing that it is committed to maintaining price stability for Canadians by keeping inflation close to the 2% target.
Seabridge Gold (SEA.TO) lost nearly 6.5%. Cameco Corporation (CCO.TO), Trisura Group (TSU.TO), Premium Brands Holdings Corporation (PBH.TO), TFI International (TFII.TO) and Shopify Inc (SHOP.TO) ended down by 2.3 to 4.5%.
Imperial Oil (IMO.TO), Constellation Software (CSU.TO), BlackBerry (BB.TO), Coveo Solutions (CVO.TO), Docebo Inc (DCBO.TO), MEG Energy (MEG.TO), Cenovus Energy (CVE.TO), Iamgold (IMG.TO), Eldorado Gold (ELD.TO) and Hudbay Minerals (HBM.TO) were among the other major losers in the session.
Celestica Inc (CLS.TO) climbed 2.6%. Restaurant Brands International (QSR.TO) gained nearly 2%, while Cogeco Inc. (CGO.TO), Cogeco Communications (CCA.TO), EQB Inc (EQB.TO), Boyd Group Services (BYD.TO) and goeasy (GSY.TO) closed higher by 1 to 1.5%.
Gold futures settled lower on Wednesday, as the dollar and bond yields moved up. Profit taking after six successive days of gains contributed as well to the drop in yellow metal prices.
Gold futures for October ended down $29.80 or about 1.1% at $2,714.40 an ounce. Silver futures for October settled lower by $1.1910 or about 3.4% at $33.640 an ounce, while Copper futures for November dropped to $4.2960 per pound, down $0.0590 or about 1.35% from the previous close.
Oil prices fell on Wednesday, weighed down by data showing a larger than expected increase in crude oil inventories in the U.S. in the week ended October 18th. West Texas Intermediate crude oil futures for December ended down $0.97 or about 1.35% at $70.77 a barrel.
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