TSX Ends Notably Lower After BoC's Policy Statement

(RTTNews) - The Canadian stock market ended weak on Wednesday, weighed down by the central bank's outlook for the economy and the sell-off in energy shares after crude oil prices drifted lower.

Weakness in European and U.S. markets amid mixed earnings reports weighed as well.

The benchmark S&P/TSX Composite Index ended down 82.88 points, or 0.5%, at 16,586.52, after scaling a low of 16,572.11 and a high of 16,666.04 in the session.

The Capped Energy Index shed 2.31%. Canadian Natural Resources (CNQ.TO), Suncor Energy (SU.TO), Vermilion Energy (VET.TO), Imperial Oil (IMO.TO), Tourmaline Oil Corp. (TOU.TO), Whitecap Resources (WCP.TO) and Husky Energy (HSE.TO) lost 1 to 3.4%.

Baytex Energy (BTE.TO) declined 5.8% and ARC Resources (ARX.TO) ended lower by 4.3%.

Cenovus Energy (CVE.TO) ended nearly 2% down after the company's results fell short of expectations. Cenovus said it generated net earnings from continuing operations of $110 million in the first quarter, compared with a net loss of $914 million in the same period in 2018, and operating earnings from continuing operations of $69 million compared with a $752 million operating loss in the first quarter a year earlier.

In the banking space, Royal Bank of Canada (RY.TO) declined by 2.2%. Toronto-Dominion Bank and Bank of Nova Scotia (BNS.TO) both ended lower by about 0.75%, while National Bank of Canada (NA.TO), Bank of Montreal (BMO.TO) and Canadian Imperial Bank of Commerce (CM.TO) ended slightly weak.

Manulife Financial Corporation (MFC.TO) ended lower by 1.1% and Sun Life Financial (SLF.TO) shed 0.7%, while Fairfax Financial Holdings (FFH.TO) gained about 1.2%.

Consumer staples shares Metro Inc. (MRU.TO), Loblaw Companies (L.TO), George Weston (WN.TO) and Empire Company (EMP.A.TO) lost 1 to 2%. Cott Corporation (BCB.TO) gained more than 1.5%.

Information technology shares Shopify Inc. (SHOP.TO), Constellation Software (CSU.TO), BlackBerry (BB.TO) and Kinaxis Inc. (KXS.TO) lost 1 to 3%. Descartes Systems Group (DSG.TO) ended with a gain of about 2%.

Among the stocks in the healthcare space, Canopy Growth Corporation (WEED.TO), Cronos Group Inc. (CRON.TO), Hexo Corp. (HEXO.TO) and Green Organic Dutchman Holdings (TGOD.TO) gained 2.5 to 3%, while CannTrust Holdings (TRST.TO) surged up 4.75%.

Knight Therapeutics Inc. (GUD.TO) and Sienna Senior Living Inc. (SIA.TO) gained 1.15% and 1%, respectively.

Among materials shares, Nutrien (NTR.TO) ended 1.6% down, Teck Resources (TECK.B.TO) declined more than 3% and CCL Industries (CCL.B.TO) closed lower by 2.2% and Methanex Corporation (MX.TO) lost 2.4%.

Agnico Eagle Mines (AEM.TO) gained 1.5% and Kirkland Lake Gold (KL.TO) jumped 3.5%. Yamana Gold (YRI.TO) gained 2.4% and Kinross Gold Corporation (K.TO) advanced by more than 3%.

Bombardier Inc. (BBD.B.TO) ended 2.8% up, extending recent gains.

The Bank of Canada, which left its key rate unchanged at 1.75%, eliminated its wording suggesting the hint for rate hikes in future from its policy statement.

The economic growth during the first half of 2019 is now estimated to be slower than anticipated in January, the bank said.

Inflation is forecast to dip in the third quarter, due to the dynamics of gasoline prices, before returning to about 2% by year end.

"Given all these developments, the Governing Council judges that an accommodative policy interest rate continues to be warranted," the bank noted.

This was in contrast with the March statement which suggested "about the timing of future rate increases."

U.S. stocks showed a lack of direction amid mixed earnings news on Wednesday and the major averages, which spent the day bouncing back and forth across the unchanged line, ended modestly lower.

The Dow, the Nasdaq and the S&P 500 all ended lower by about 0.2%.

European stocks closed mostly lower, while Asian markets turned in a mixed performance on Wednesday.

In commodities, West Texas Intermediate Crude oil futures for June ended down $0.41, or 0.6%, at $65.89 a barrel after data from Energy Information Administration showed a much higher than expected jump in U.S. crude stockpiles last week.

Gold futures for June ended up $6.20, or less than 0.49%, at $1,279.60 an ounce.

Silver futures for May ended up $1.25, at $14.916 an ounce, while Copper futures for May settled at $2.9100 per pound, adding $0.0165 to its previous close.