TSX declines ahead of Fed statement

Wed Oct 29, 2014 11:02am EDT
 
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By John Tilak

TORONTO (Reuters) - Canada's main stock index fell on Wednesday as investors awaited the Federal Reserve’s statement on monetary policy later in the day.

The U.S. central bank is expected to announce the end of its asset-buying program and assure markets that it does not plan to raise interest rates anytime soon.

Shares of energy producers, which have had a rocky ride in recent weeks, jumped with the price of oil. But those gains offset by weakness in the gold-mining and financial sectors.

The Toronto stock market has been hit over the past month by worries about Fed policy, choppy oil prices and sluggish global economic growth.

“We think the Fed will want to keep interest rates low for longer than we expected,” said Irwin Michael, portfolio manager at ABC Funds. “The (market) psychology is slowly but surely improving.”

He sees opportunities in the Canadian energy and mining sectors. “We think the resource side is oversold and possibly due for a bit of a snapback.”

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was down 39.16 points, or 0.27 percent, at 14,585.09. Seven of the 10 main sectors on the index were in the red.

The gold-mining sector fell 1.7 percent, with the price of bullion declining. Barrick Gold Corp (ABX.TO: Quote) shed 2.7 percent to C$14.70, and Goldcorp Inc (G.TO: Quote) was down 1.8 percent at C$24.64.   Continued...

 
A sign board displaying Toronto Stock Exchange (TSX) stock information is seen in Toronto June 23, 2014.  REUTERS/Mark Blinch