TSX edges lower as investors eye Fed meeting

September 16, 2014

By John Tilak

TORONTO (Reuters) – Canada’s main stock index declined slightly on Tuesday as investors appeared hesitant to take major positions ahead of a key U.S. Federal Reserve policy meeting.

Investors expect the Fed to provide more clarity on interest rates at the end of a two-day policy meeting on Wednesday, with increasing speculation that the central bank might raise rates earlier than had been thought.

The Toronto stock market was also wary ahead of a press conference by Bank of Canada Stephen Poloz later on Tuesday, and before the Scottish referendum on independence on Thursday.

“It’s one of those days when people are just on hold and really sitting on pins and needles, waiting to see what’s going to happen next,” said Colin Cieszynski, chief market strategist at CMC Markets Canada.

“It’s just in the last few days that we’ve started to see stock markets starting to come around to the idea that perhaps happy days may not be here forever and the liquidity party may come to an end sooner than (expected).”

The Toronto Stock Exchange’s S&P/TSX composite index <.GSPTSE> was down 34.99 points, or 0.23 percent, at 15,447.57. Seven of the 10 main sectors on the index were in the red.

Financials, the index’s most heavily weighted sector, slipped 0.2 percent, with Bank of Nova Scotia losing 0.3 percent to C$72.82, and Toronto-Dominion Bank giving back 0.3 percent to C$57.41.

The materials sector, which includes mining stocks, fell as commodity prices remained choppy. Goldcorp Inc shed 1 percent to C$27.52, and Teck Resources Ltd dropped 1.2 percent to C$23.06.

(Editing by Peter Galloway)

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