CANADA STOCKS-TSX declines as investors brace for Fed

Wed Sep 17, 2014 10:56am EDT
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* TSX down 33.66 points, or 0.22 percent, at 15,476.88
    * Six of the 10 main index sectors decline
    * Energy shares track U.S. crude oil price lower

    By John Tilak
    TORONTO, Sept 17 (Reuters) - Canada's main stock index fell
on Wednesday as investors anxiously awaited release of a U.S.
Federal Reserve policy statement at the conclusion of a two-day
Fed meeting later in the day.
    Investors will search the statement for changes in the U.S.
central bank's outlook on interest rates, with market
expectations swinging back and forth on how fast the Fed will
move to raise rates. 
    The volatility of global markets has increased in recent
weeks as the Fed statement approached, with the Canadian
benchmark stock index trading sideways after a strong runup
since the start of the year.
    "Investors will look for more clarity on the timing and
quickness of (the Fed's) next policy move," said Stan Wong,
director of wealth management and portfolio manager at
ScotiaMcLeod. "Forward guidance from the Fed today is especially
crucial to investor sentiment."
    "Market participants are paying a lot of attention to
whether the Fed continues to say they will wait for 'a
considerable time' between ending the quantitative easing, which
should happen next month, and raising interest rates," Wong
    The Toronto Stock Exchange's S&P/TSX composite index
 was down 33.66 points, or 0.22 percent, at 15,476.88. 
    Wong said that the recent selloff in energy shares on the
Toronto market might have been overdone, offering investors a
buying opportunity.
    "With the U.S. economy on track to continue to grow and the
global economy hopefully following suit, energy prices should go
higher," he said.
    Six of the 10 main sectors on the Canadian index were in the
red on Wednesday.
    Shares of energy producers gave back 0.7 percent, reflecting
weakness in the price of U.S. crude oil. Suncor Energy Inc
 lost 0.5 percent to C$43.24 and Canadian Natural
Resources Ltd shed 0.4 percent to C$45.54.
    The materials sector, which includes mining stocks, declined
0.4 percent, with commodity prices showing choppiness. Goldcorp
Inc fell 0.8 percent to C$27.55 and Potash Corp 
was down 0.4 percent at C$38.50. 
    ($1=$1.10 Canadian)

 (Editing by Peter Galloway)