TSX falls on lower oil prices, credit market uncertainty
By Fergal Smith
TORONTO (Reuters) - Canada's main stock index fell on Wednesday, hitting a two-week low as a drop in oil prices and credit market uncertainty weighed on energy and financial stocks.
The market closed lower for a fourth straight day despite reassurance from Federal Reserve Chair Janet Yellen about the U.S. economy's ability to absorb a gradual rise in interest rates.
The weak oil price "continues to put pressure on the index," said Youssef Zohny, a portfolio manager at StennerZohny Investment Partners.
U.S. crude prices CLc1 fell 2 percent after stockpiles at the main U.S. delivery point hit record highs.
Canadian Natural Resources Ltd (CNQ.TO: Quote) fell 2.7 percent to C$27.36, while Cenovus Energy Inc CVE.TO was down 8.4 percent at C$13.52. The overall energy group fell 2.7 percent.
Financial stocks fell 1.4 percent after reversing earlier gains. It included a 2.1 percent drop in the shares of Royal Bank of Canada (RY.TO: Quote) to C$66.19.
Bank stocks are likely to remain under pressure ahead of earnings as investors worry about uncertainties surrounding energy and credit markets, according to Zohny.
Algonquin Power & Utilities Corp AQN.TO fell 7.8 percent to C$10.64 after announcing on Tuesday a C$3.4 billion acquisition. Continued...