Equity markets in Toronto turned negative on Wednesday after the Bank of Canada surprised many with an interest rate increase, with the move cutting into earlier gains for energy stocks as oil prices rose.
The S&P/TSX Composite Index dropped 10.3 points to stagger into noon hour ET at 15,079.85
The Canadian dollar leaped 0.97 cents to 81.82 cents U.S.
The most influential gainers on the index included Alimentation Couche Tard, which jumped 2.2% to $60.76 after the convenience store operator reported better-than-expected quarterly earnings.
The energy group trimmed sharper gains before the rate hike announcement, with Canadian Natural Resources up 1.4% to $39.83 and Encana Corp also up 1.4% to $11.69.
The reopening of U.S. Gulf Coast refineries helped provide a more bullish outlook for oil after sharp price drops due to Hurricane Harvey, but a second hurricane, Irma, was reported to be approaching the United States.
Pipeline company Enbridge added 0.4% to $49.96 and rival TransCanada Corp rose 0.6% to $62.76, this, after TransCanada said it would extend open season for its Keystone system due to flooding in Houston and parts of the U.S. Gulf Coast caused by Harvey.
Shares in Hudson's Bay Co fell sharply at the open before paring those losses to last trade down 1.2% at $11.13. The department store behemoth reported a bigger-than-forecast quarterly loss after the bell on Tuesday.
Economically speaking, the Bank of Canada announced it was raising its target for the overnight rate to 1%. The Bank Rate is correspondingly 1.25% and the deposit rate is 0.75%
Elsewhere, Statistics Canada reported Canada's merchandise trade deficit totaled $3.0 billion in July, narrowing from a $3.8-billion deficit in June. Imports fell 6.0% while exports decreased 4.9%.
The TSX Venture Exchange ditched 1.33 points midday to 778.36
All but two of the 12 TSX subgroups were lower by noon, with gold fading 1.6%, information technology slipping 1.1%, and materials down 0.7%.
The two gainers were energy, up 0.5%, and consumer staples, up 0.1%.
U.S. stocks rose on Wednesday after a statement from two top Congressional leaders said they are prepared to vote in favor of a three-month debt limit increase.
The Dow Jones Industrials pared gains to remain positive 52.49 points, to 21,805.80, with Home Depot and Goldman Sachs contributing the most to the gains.
The S&P 500 recovered 4.55 points to 2,462.40, with energy and financials among the best performers. However, shares of United Continental Holdings and Newell Brands were among the worst performers in the S&P 500.
United cut its unit revenue and pre-tax margin guidance for this quarter, citing Hurricane Harvey. Newell Brands, meanwhile, issued a statement saying "nearly all" of its resin suppliers in Louisiana and Texas are shut down because of Harvey.
The NASDAQ lurched lower 0.37 points to 6,375.21, after a higher open as shares of large-cap tech stocks pulled back slightly.
Also contributing to the gains Tuesday was a rebound in financials. The sector rose 0.6% a day after posting its worst session since May 17. Shares of Goldman Sachs advanced 1.4% while Bank of America's stock rose 0.6%.
The rebound came a day after the Dow and the S&P posted their worst sessions since Aug. 17. Stocks pulled back sharply amid rising tension between North Korea and the West.
In economic news, international trade numbers showed the U.S. trade deficit for July came in at $43.7 billion, below the expected $44.7 billion. Other data set for release include the Purchasing Managers Index services index and the Institute for Supply Management non-manufacturing report.
Another big major data point is set to be released at 2 p.m. ET, which is the latest publication of the Federal Reserve's Beige Book.
Prices for the benchmark 10-year Treasury note regained lost strength, lowering yields to Tuesday's 2.07%. Treasury prices and yields move in opposite directions.
Oil prices marched ahead 61 cents to $49.27.
Gold prices inched up 50 cents to $1,343.00 U.S. an ounce.