OTTAWA (dpa-AFX) - Canadian stocks edged lower on Wednesday as investors analyzed the impact of the interest rate hike announced by the U.S. Federal Reserve against the sharp decline in crude oil prices even though the Middle East crisis deepens.
After opening above yesterday's close, today the benchmark S&P/TSX Composite Index lost momentum and turned lower. By late afternoon, the index slipped into negative territory and traded firmly negative before settling at 35,491.27, down by 90.80 points (or 0.26%).
Six of the 11 sectors posted gains today, with the utilities sector leading the pack.
Today in the U.S., delivering its first rate hike since July 2023, the Fed raised its benchmark interest rate by 25 basis points to 3.75% to 4.00% at the conclusion of its two-day meeting.
The move, which was in line with expectations of market participants, comes after inflation persisted well above the Fed's 2.00% target.
Sixteen of 18 policymakers anticipate at least one more quarter-percentage-point hike by the end of this year.
After the meeting between the foreign ministers of the Gulf Cooperation Council with Iranian leaders scheduled to be held on Monday was cancelled, expectations of a resolution to the ongoing U.S.-Iran conflict diminished.
In addition, Iran categorically denied Trump's claims that Iran is seeking to strike a deal with the U.S.
Shipping traffic across the Strait of Hormuz has fallen down to single digits.
Following last week's drone attacks by Houthi militants on its vital East-West pipeline, Saudi Arabia shut the line.
Today, citing people familiar with the matter, Reuters reported that Saudi Arabia is offering substantial loadings of crude oil to Asian refiners via ship-to-ship (STS) transfer off Oman's Sohar port.
The tariff war started by the U.S. against Canada entered the next phase since Tuesday when the U.S. tariffs on a lesser number of Canadian goods came into effect.
Last week, the U.S. administration announced 50% tariffs on nearly 110 Canadian products entering the U.S. which included motor boats, all-terrain vehicles, furniture, metal and paper products, etc.
Simultaneously, the U.S. also removed 50% tariffs on roughly 10 items which included cement, sugar, switchboards, salt, fishing rods, etc.
While the added tariffs cover nearly $2.56 billion of 2025 trade, the removed tariffs equal roughly $2.41 billion.
Since August 22, a vast majority of Canadian goods entering the U.S. suffer 50% tariffs, amounting to $28 billion.
In retaliation, Canada imposed a 'dollar-for-dollar' tariff on several U.S. imports entering Canada which took effect from September 8.
U.S. President Donald Trump ordered banning certain Canadian products from entering the U.S. which include Canada-made liquor and a few Canadian dairy products. The ban kicks in from September 29.
Last Saturday in Ireland, Trump stressed that Canada wants to make a deal with the U.S. very badly but he felt that the regime is not ready yet.
Last week, Canada's Prime Minister Mark Carney stated that he was seeking a 'unique alliance' with the European Union without becoming a member.
Today, the President of the European Commission Ursula von der Leyen supported the plan for making Canada the first associate member of the European Union.
Data released by the Canada Mortgage and Housing Corporation revealed that on a month-on-month basis, the housing starts were largely flat at a seasonally adjusted annual rate of 229,000 units in August, the lowest since March 2025, and below market forecasts of 240,000 units.
Major sectors that gained in today's trading were Utilities (1.85%), Consumer Discretionary (1.68%), Consumer Staples (1.26%), IT (0.34%), Financials (0.11%), and Healthcare (0.04%).
Among the individual stocks, Transalta Corporation (4.43%), Canadian Utilities Ltd (2.89%), Northland Power Inc (2.79%), Dollarama Inc (5.47%), Bird Construction Inc (2.95%), and Empire Company Limited (2.26%) were the prominent gainers.
Major sectors that lost in today's trading were Energy (3.38%), Industrials (0.69%), Materials (0.59%), Communication Services (0.39%), and Real Estate (0.13%).
Among the individual stocks, Athabasca Oil Corp (7.42%), Advantage Energy Ltd (6.72%), Strathcona Resources Ltd (6.71%), Spartan Delta Corp (6.65%), Tfi International Inc (5.17%), and Boyd Group Services Inc (4.93%) were the notable losers.
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