MONEY IN BRIEF

Currencies

OTTAWA (CP) — These are indicative wholesale rates for foreign currency provided by the Bank of Canada on Wednesday. Quotations in Canadian funds. Australia dollar 0.9078 Brazil real 0.3242 China renminbi 0.1873 Euro 1.4669 Hong Kong dollar 0.1695 India rupee 0.01865 Indonesia rupiah 0.000094 Japan yen 0.01226 Malaysia ringgit 0.3172 Mexico peso 0.06854 N.Z. dollar 0.8403 Norway krone 0.1485 Peruvian new sol 0.3968 Russia rouble 0.02066 Saudi riyal 0.3538 Singapore dollar 0.966 South Africa rand 0.09065 South Korean won 0.001114 Sweden krona 0.1368 Switzerland franc 1.3332 Taiwanese dollar 0.04287 Thailand baht 0.04349 Turkey lira 0.234 U.K. pound 1.656 U.S. dollar 1.3271 Vietnam dong 0.000057

The markets today

TORONTO (CP) — Canada’s main stock index closed lower Wednesday as oil and gold sectors fell and the U.S. Federal Reserve disappointed with its interest rate cut and guidance. A sharply divided central bank cut its benchmark interest rate a quarter point for a second time this year but declined to signal that further rate cuts are likely this year.

“The somewhat hawkishleaning outcome from the Federal Reserve gathering has been met with a disappointing market response,” said Candice Bangsund, portfolio manager for Fiera Capital.

The market expected the size of the cut but believed going into the meeting that it would reduce rates three or four times by the end of 2020. In making its decision, the Fed acknowledged the strength of the domestic economy, labour market and consumer while also recognizing slower business investment and weaker exports which it attributed to global trade headwinds. “Longer-term the Fed is essentially reinforcing the view that we are not headed into a recession and the world’s largest economy remains in good shape, and yes, there are global headwinds while the current stance of policy is still accommodative enough to support growth,” she said. The S&P/TSX composite index fell from Tuesday’s record high to close down 34.46 points at 16,800.29. Energy led five sectors that lost ground, falling 1.5 per cent with Husky Energy Inc. and Encana Corp. down 2.8 and 2.6 per cent respectively. They dropped as crude oil prices softened for a second day after Saudi Arabia said it was restoring production at an oil facility that was attacked over the weekend and U.S. crude inventories rose last week after four consecutive weeks of declines.

The November crude contract was down US$1.06 at US$58.04 per barrel and the October natural gas contract was down 3.1 cents at US$2.64 per mmBTU.

Materials was also lower with shares of several miners slipping despite higher gold prices. Barrick Gold Corp. shares dropped more than two per cent.

The Canadian dollar traded for an average of 75.35 cents US, down compared with an average of 75.43 cents US on Tuesday.

Bangsund said she doesn’t see the Bank of Canada following the Fed and cutting rates.