July 14, 2010 / 8:55 PM / 9 years ago

CANADA STOCKS-TSX ends lower after Fed policy minutes

* TSX falls 0.45 percent to 11,620.16

* Nine of 10 sectors lower after FOMC minutes

* Fed minutes show policy makers concerned with economy (Updates to close)

By Ka Yan Ng

TORONTO, July 14 (Reuters) - Toronto’s main stock index ended lower on Wednesday after the U.S. Federal Reserve signalled it was concerned about slowing growth and felt it should stand ready to consider additional steps to boost the U.S. economy if the outlook worsened.

Minutes from the U.S. central bank’s June 22-23 policy meeting, along with disappointing U.S. retail sales figures for June, shifted the balance of sentiment into negative territory. Earlier, the TSX was little changed with firm oil prices and healthy U.S. earnings offsetting the retail data. [ID:nN14122226] [ID:nN14148574]

“A lot of noise is in the marketplace. You just sort of have to work through. Ultimately it’s going to be day-by-day on how the market reacts to any kind of news,” said Brian Pow, vice-president, research and equity analyst at Acumen Capital Partners, in Calgary.

Volumes are also growing thinner, reflecting the onset of summer trading, Pow said, and that is likely to exaggerate market moves.

“Generally speaking, I think the volumes are going to be a little bit lighter and a little less indicative of what’s going on in the underlying economy,” said Pow.

The Toronto Stock Exchange’s S&P/TSX composite index .GSPTSE ended down 52.68 points, or 0.45 percent, at 11,620.16. Nine of its 10 main sectors were lower, including the energy group, down 0.69 percent.

U.S. crude oil futures, which had a volatile session, turned negative on Wednesday afternoon after the Fed’s minutes, settling near $77 a barrel. [O/R]

Suncor Energy (SU.TO) was off 1.05 percent at C$32.83, while Husky Energy (HSE.TO) fell 1.89 percent to C$26.43.

The TSX’s financial group, often a play on the broader economy, was 0.47 percent lower, with Royal Bank of Canada (RY.TO) down 0.58 percent at C$54.56 and Toronto-Dominion Bank (TD.TO) off 0.59 percent at C$72.12.

Bank of Montreal (BMO.TO) bucked the trend, rising 0.57 percent to C$61.42.

Early support for the broader market came from robust quarterly results posted by Intel Corp (INTC.O), which sent positive signals across the cyclical technology industry and prompted at least four brokerages to raise their share price targets for the world’s largest chipmaker. [ID:nSGE66D0G3]

$1=$1.03 Canadian Reporting by Ka Yan Ng; editing by Rob Wilson

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