The S&P/TSX Composite Index fell about 1% on Wednesday, slipping below 32,650 as hotter-than-expected US producer inflation and steep losses in mining stocks outweighed the impact of the Bank of Canada’s decision to leave interest rates unchanged. The decline came after US wholesale prices rose 0.7% in February, a stronger reading that lifted the US dollar and pressured commodity-sensitive equities.
The Bank of Canada held its overnight rate at 2.25%, in line with expectations, but the Governing Council cautioned that heightened volatility in global energy markets and ongoing tensions in the Middle East have shifted risks to domestic growth to the downside.
Resource-heavy names led the pullback, with Agnico Eagle and Barrick Gold each dropping more than 5% as bullion prices retreated. Energy majors also remained under pressure despite regional supply disruptions. Investors are now looking ahead to the Federal Reserve’s upcoming decision for further signals on the global interest rate trajectory, as shipping through the Strait of Hormuz continues to face disruptions. Financials were mixed, with RBC inching higher.
