The stock market in Canada continued to decline on Wednesday after minutes from the U.S. Federal Reserve’s December meeting increased uncertainty about the central bank’s upcoming interest rate decisions. As a result, the S&P/TSX Composite Index gave up 54 points, or 0.3%, to settle at 20,819 — its lowest closing level since December 22.
Even as a sharp rebound in crude oil and natural gas prices drove energy stocks higher, declines in most other key market sectors pressured the TSX benchmark into the red territory, primarily led by big losses in the shares of consumer cyclical, real estate, mining, and technology companies.
The Fed’s December meeting minutes
In its latest meeting minutes, on the one hand, Fed participants acknowledged an “unusually elevated degree of uncertainty” in their economic outlooks, hinting toward a fluid approach to future rate adjustments. However, they did not dismiss the possibility that “the economy could evolve in a manner that would make further increases in the target range appropriate,” signalling openness to maintaining or increasing rates as needed.
Top TSX Composite movers and active stocks
First Majestic Silver, Magna International, Osisko Mining, Eldorado Gold, and Colliers International were the worst-performing TSX stocks yesterday, as they plunged by over 5% each.
On the flip side, shares of Suncor Energy (TSX:SU) climbed up by nearly 6% to $45.34 per share after providing an operational update. In a press release, the Calgary-based oil and gas producer told investors that it successfully met its 2023 production target, averaging 746,000 barrels of oil per day and reaching up to 808,000 barrels daily in the fourth quarter of the year.
December marked a record month for Suncor’s upstream production, with more than 900,000 barrels produced daily. The management highlighted increased “focus on the fundamentals of safety, operational excellence, and reliability” as some of the main reasons that helped the company meet production targets last year. After ending 2023 with a 1.2% decline, SU stock has risen 6.8% so far in January.
First Quantum Minerals, Peyto Exploration, and Kelt Exploration were also among the top gainers on the Toronto Stock Exchange in the last session, as they inched up by more than 4% each.
Based on their daily trade volume, Toronto-Dominion Bank, Suncor Energy, First Quantum Minerals, TC Energy, and Baytex Energy were the most active stocks on the exchange.
TSX today
Commodity prices across the board were largely bullish early Thursday morning, which could lift the resource-heavy main TSX index at the open today.
Although no major domestic economic releases are due, Canadian investors may want to keep a close eye on the latest monthly non-farm employment change, services purchasing managers index, weekly jobless claims, and crude oil stockpile data from the United States this morning. Overall, TSX stocks may remain volatile, as investors continue to closely assess the Fed’s latest meeting minutes.
Market movers on the TSX today
