Canada’s resources-heavy main stock index was dragged down on Wednesday by a drop in mining shares as prices of precious metals declined while investors awaited minutes from the U.S. Federal Reserve’s latest meeting for cues on interest rate cuts.
At 10:08 a.m. ET, the S&P/TSX composite index was down 72.25 points, or 0.35%, at 20,799.89.
Wall Street was also weaker, but pared some declines after data showed lower-than-expected job openings in November, hinting at a softening labour market.
A scorching rally in global equities in the last two months of 2023 faltered at the start of the new year as investors pared back bets of early rate cuts from the Fed and escalating tensions in the Middle East sapped risk appetite.
“We continue to see a normalizing of U.S. labor markets. That further propels the central bank’s ability to cut rates,” said Art Hogan, chief market strategist at B Riley Wealth.
Minutes from the Fed’s December meeting due at 1400 ET will offer further clarity on the monetary policy path.
Meanwhile, traders are pricing in 43% odds of a rate cut of at least 25 basis points by the Bank of Canada in March.
The TSX materials sector, which includes precious and base metals miners and fertilizer companies, dropped 1.3% as a stronger dollar pushed gold and copper prices to a near two-week low.
The technology sector, which posted its biggest one-day percentage drop in more than three months on Tuesday, fell 0.7%. Healthcare fell over 1%.
Energy shares outperformed the broader market, gaining 1.4% as crude prices rose.
Suncor Energy climbed 4% after the energy firm said it saw record upstream production in the fourth quarter.
Orea Mining dropped 25% after the company announced expected delay in filing annual audited financial statements.
Wall Street kicked off the new year on a downbeat note, as Apple and high-growth companies came under pressure from higher bond yields.
Last week, the benchmark S&P 500 came within striking distance of its all-time closing high as investors priced in aggressive rate cuts this year following signs of cooling inflation.
Shares of rate-sensitive megacap stocks extended their drop on Wednesday, with Nvidia, Apple and Tesla down between 0.6% and 3.8%, as the 10-year Treasury yield climbed for a fourth straight session to 3.968%.
“The decline yesterday, today and maybe for the next couple of weeks, is a result of people locking in profits and reconsidering what the narrative is – are rates really going down five or six times as it appeared to be the narrative at the end of last year?” said Ken Polcari, managing partner at Kace Capital Advisors.
While the Fed is widely expected to keep rates on hold in January, traders have priced in a 65.7% chance of a 25 basis point rate cut in March, as per CMEGroup’s FedWatch tool.
“The minutes are going to show that they’ve been talking about potentially starting to cut rates, but not at the rate at which the market is expecting,” added Polcari.
The U.S. central bank is “making real progress” towards taming inflation and a soft landing seeming “increasingly conceivable,” said Richmond Fed President Thomas Barkin, a voting member in the FOMC’s rate-setting committee this year.
Another report Wednesday showed a gauge of U.S. manufacturing activity stood at 47.4 in December, above the estimate of 47.1, according to economists polled by Reuters.
At 10:08 a.m. ET, the Dow Jones Industrial Average was down 164.45 points, or 0.44%, at 37,550.59, the S&P 500 was down 22.00 points, or 0.46%, at 4,720.83, and the Nasdaq Composite was down 91.78 points, or 0.62%, at 14,674.16.
Nine of 11 S&P 500 sectors traded in the red, with materials and real-estate leading declines.
Verizon Communications rose 1.7% after KeyBanc upgraded the stock to “overweight.”
Charles Schwab and Blackstone dropped 2.8% and 3.8%, respectively, after Goldman Sachs downgraded the stocks to “neutral” from “buy.”
SentinelOne dropped 2.3% as the cybersecurity firm plans to acquire Indian cloud security firm PingSafe to expand its cloud capabilities in a cash-and-stock deal.
Declining issues outnumbered advancers for a 2.98-to-1 ratio on the NYSE and a 2.70-to-1 ratio on the Nasdaq.
The S&P index recorded 15 new 52-week highs and no new lows, while the Nasdaq recorded 27 new highs and 33 new lows.
TORONTO – Canada Goose Holdings Inc. says it has signed a deal that will result in the creation of its first eyewear collection.
The deal announced on Thursday by the Toronto-based luxury apparel company comes in the form of an exclusive, long-term global licensing agreement with Marchon Eyewear Inc.
The terms and value of the agreement were not disclosed, but Marchon produces eyewear for brands including Lacoste, Nike, Calvin Klein, Ferragamo, Longchamp and Zeiss.
Marchon plans to roll out both sunglasses and optical wear under the Canada Goose name next spring, starting in North America.
Canada Goose says the eyewear will be sold through optical retailers, department stores, Canada Goose shops and its website.
Canada Goose CEO Dani Reiss told The Canadian Press in August that he envisioned his company eventually expanding into eyewear and luggage.
This report by The Canadian Press was first published Sept. 19, 2024.
Almost seven years since news broke of an alleged conspiracy to fix the price of packaged bread across Canada, the saga isn’t over: the Competition Bureau continues to investigate the companies that may have been involved, and two class-action lawsuits continue to work their way through the courts.
Here’s a timeline of key events in the bread price-fixing case.
Oct. 31, 2017: The Competition Bureau says it’s investigating allegations of bread price-fixing and that it was granted search warrants in the case. Several grocers confirm they are co-operating in the probe.
Dec. 19, 2017: Loblaw and George Weston say they participated in an “industry-wide price-fixing arrangement” to raise the price of packaged bread. The companies say they have been co-operating in the Competition Bureau’s investigation since March 2015, when they self-reported to the bureau upon discovering anti-competitive behaviour, and are receiving immunity from prosecution. They announce they are offering $25 gift cards to customers amid the ongoing investigation into alleged bread price-fixing.
Jan. 31, 2018: In court documents, the Competition Bureau says at least $1.50 was added to the price of a loaf of bread between about 2001 and 2016.
Dec. 20, 2019: A class-action lawsuit in a Quebec court against multiple grocers and food companies is certified against a number of companies allegedly involved in bread price-fixing, including Loblaw, George Weston, Metro, Sobeys, Walmart Canada, Canada Bread and Giant Tiger (which have all denied involvement, except for Loblaw and George Weston, which later settled with the plaintiffs).
Dec. 31, 2021: A class-action lawsuit in an Ontario court covering all Canadian residents except those in Quebec who bought packaged bread from a company named in the suit is certified against roughly the same group of companies.
June 21, 2023: Bakery giant Canada Bread Co. is fined $50 million after pleading guilty to four counts of price-fixing under the Competition Act as part of the Competition Bureau’s ongoing investigation.
Oct. 25 2023: Canada Bread files a statement of defence in the Ontario class action denying participating in the alleged conspiracy and saying any anti-competitive behaviour it participated in was at the direction and to the benefit of its then-majority owner Maple Leaf Foods, which is not a defendant in the case (neither is its current owner Grupo Bimbo). Maple Leaf calls Canada Bread’s accusations “baseless.”
Dec. 20, 2023: Metro files new documents in the Ontario class action accusing Loblaw and its parent company George Weston of conspiring to implicate it in the alleged scheme, denying involvement. Sobeys has made a similar claim. The two companies deny the allegations.
July 25, 2024: Loblaw and George Weston say they agreed to pay a combined $500 million to settle both the Ontario and Quebec class-action lawsuits. Loblaw’s share of the settlement includes a $96-million credit for the gift cards it gave out years earlier.
Sept. 12, 2024: Canada Bread files new documents in Ontario court as part of the class action, claiming Maple Leaf used it as a “shield” to avoid liability in the alleged scheme. Maple Leaf was a majority shareholder of Canada Bread until 2014, and the company claims it’s liable for any price-fixing activity. Maple Leaf refutes the claims.
This report by The Canadian Press was first published Sept. 19, 2024.
Companies in this story: (TSX:L, TSX:MFI, TSX:MRU, TSX:EMP.A, TSX:WN)
TORONTO – TD Bank Group, which is mired in a money laundering scandal in the U.S., says chief executive Bharat Masrani will retire next year.
Masrani, who will retire officially on April 10, 2025, says the bank’s, “anti-money laundering challenges,” took place on his watch and he takes full responsibility.
The bank named Raymond Chun, TD’s group head, Canadian personal banking, as his successor.
As part of a transition plan, Chun will become chief operating officer on Nov. 1 before taking over the top job when Masrani steps down at the bank’s annual meeting next year.
TD also announced that Riaz Ahmed, group head, wholesale banking and president and CEO of TD Securities, will retire at the end of January 2025.
TD has taken billions in charges related to ongoing U.S. investigations into the failure of its anti-money laundering program.
This report by The Canadian Press was first published Sept. 19, 2024.
