TSX drops as oil prices fall on supply concerns
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