TSX drops as oil prices fall on sup­ply con­cerns

The Financial Daily - - NATIONAL -

TORONTO: Canada's main stock in­dex was lower on Wed­nes­day as a de­cline in oil prices on con­cerns about a buildup in U.S. crude in­ven­to­ries hit shares of en­ergy pro­duc­ers.

In­vestors were also await­ing a pol­icy state­ment from the U.S. Fed­eral Re­serve later in the day fol­low­ing a two-day Fed meet­ing.

The mar­ket in re­cent days has had to process un­cer­tainty over the Greek elec­tion re­sults, as well as slug­gish eco­nomic data from China and the United States.

The Amer­i­can Pe­tro­leum In­sti­tute said late on Tues­day that U.S. crude stocks shot up last week. That sent the price of U.S. crude oil down nearly 3 per­cent, and shares of oil and gas pro­duc­ers on the Toronto stock mar­ket were 2.3 per­cent lower on Wed­nes­day.

"Oil is try­ing to set­tle at these lev­els, but it's still go­ing to be choppy be­cause it's come down so far, so fast," said Colin Cieszyn­ski, chief mar­ket strate­gist at CMC Mar­kets.

"There will be more un­cer­tainty, at least in the near term, be­cause we're get­ting a so many mixed sig­nals. We're go­ing to see a lot of tur­bu­lence for the next sev­eral months."

The Toronto Stock Ex­change's S&P/TSX com­pos­ite in­dex was down 33.83 points, or 0.23 per­cent, at 14,800.05. Seven of the 10 main sec­tors on the in­dex were higher.-Agen­cies

Newspapers in English

Newspapers from Pakistan

© PressReader. All rights reserved.