Canadian Market Modestly Lower As Investors Digest Earnings, BoC Rate Decision

(RTTNews) - Canadian stocks are turning in a mixed performance on Wednesday with investors digesting Bank of Canada's policy announcement, and reacting to a slew of corporate earnings updates.

The mood is cautious with traders awaiting the Federal Reserve's monetary policy announcement due later in the day.

The benchmark S&P/TSX Composite Index was down 54.79 points or 0.2% at 27,485.09 nearly half an hour past noon.

As widely expected, the Bank of Canada announced that it has once again decided to leave interest rates unchanged. The central bank said it decided to maintain its target for the overnight rate at 2.75%, with the Bank Rate at 3% and the deposit rate at 2.7%.

The Canadian central bank attributed the decision to leave rates unchanged for the third straight meeting to still high uncertainty, the Canadian economy showing some resilience, and ongoing pressures on underlying inflation.

"We will continue to assess the timing and strength of both the downward pressures on inflation from a weaker economy and the upward pressures on inflation from higher costs related to tariffs and the reconfiguration of trade," the Bank of Canada said.

They added, "If a weakening economy puts further downward pressure on inflation and the upward price pressures from the trade disruptions are contained, there may be a need for a reduction in the policy interest rate."

Intact Financial Corporation reported earnings per share of $5.23 for the second-quarter, compared with $4.86 per share a year ago. Despite an increase in income, the stock is down by about 4.4%.

Precision Drilling is up nearly 6% after reporting a profit for the 12th consecutive quarter. However, earnings per share was down at $061 in the latest quarter, compared to $1.44 per share in the year-ago quarter.

Agnico Eagle Mines, Tourmaline Oil Corporation and Ivanhoe Mines are up margially in cautious trade ahead of earnings updates. Alamos Gold is gaining about 0.7%.

Dye & Durham is soaring 32%. Parex Resources, Boardwalk Real Estate, Toromont Industries, Bombardier Inc., Linamar Corporation, Stantec and AltaGas are up with notable gains.

Capital Power Corporation, G Mining Ventures, TFI International, iA Financial Corporation, Bausch + Lomb Corporation, EQB, CGI Inc., International Petroleum Corporation and Lundin Gold are down 2 to 5.4%.