Canadian Market Down In Negative Territory After BoC Holds Interest Rate

(RTTNews) - After opening slightly up and metatrader4 deposit processadvancing a bit, Canadian stocks retreated Wednesday morning, with investors digesting the Bank of Canada's rate decision, and assessing the prospects of trade negotiations with the U.S. in the wake of U.S. President Donald Trump doubling tariffs on steel and aluminum.

As widely expected, the Bank of Canada said it decided to maintain its target for the overnight rate at 2.75%, with the Bank Rate at 3% and the deposit rate at 2.7%.

"With uncertainty about US tariffs still high, the Canadian economy softer but not sharply weaker, and some unexpected firmness in recent inflation data, Governing Council decided to hold the policy rate as we gain more information on US trade policy and its impacts," the Bank of Canada said.

The bank added, "We will continue to assess the timing and strength of both the downward pressures on inflation from a weaker economy and the upward pressures on inflation from higher costs."

The benchmark S&P/TSX Composite Index was down 93.35 points or 0.35% at 26,333.29 a few minutes before noon. The index, which advanced to 26,451.11, drifted down to 26,302.69.

Energy stocks are down sharply, pushing the Energy Capped Index down by nearly 2%. Utilities and consumer staples stocks are among the other notable losers. Materials stocks are finding some support, while stocks from the rest of the sectors are turning in a mixed performance.

Cenovus Energy, Denison Mines, Algonquin Power, TransAlta Corp, Brookfield Renewable, Baytex Energy Corp., Imperial Oil and International Petroleum are down 2.7 to 5%.

Shopify, Canadian Natural Resources, Iamgold Corp., Advantage Oil & Gas, Energy Fuels, Suncor Energy, Enerflex and Capital Power are also notably lower.

Novagold is soaring nearly 16%. Ero Copper is gaining 7.2%. Lundin Mining and Endeavour Mining are up 3.2% and 3%, respectively.

Equinox Gold, Capstone Mining, Calibre Mining, Pet Valu Holdings, Seabridge Gold, Aya Gold & Silver, BRP Inc., Fortuna Mining, Canadian Tire Corporation and Gildan Activewear are also up with strong gains.

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