TSX moves lower in broadbased decline dollar rises as BoC holds line

TSX moves lower in broad-based decline; dollar rises as BoC holds line on rates AddThis Sharing ButtonsShare to TwitterTwitterShare to FacebookFacebookShare to RedditRedditShare to 電子郵件Email by Malcolm Morrison, The Canadian Press Posted Mar 4, 2015 6:28 am MDT TORONTO – The Toronto stock market was lower Wednesday in a broad-based decline led by mining, energy and financial issues.The S&P/TSX composite index was 107.19 points lower at 15,026.66 as traders looked to the latest interest rate announcement by the Bank of Canada and positive jobs data from the United States.The Canadian dollar moved up 0.29 of a U.S. cent to 80.35 cents as the central bank announced it would keep its key rate unchanged at 0.75 per cent. The move came as little surprise to analysts — they had generally expected the bank to hold the line on interest rates following a quarter-point cut in January.New York indexes were also in the red as payroll firm ADP reported that the American private sector created 212,000 jobs in last month, slightly below expectations of 219,000. The data was released two days ahead of the U.S. government’s February report on job growth. Economists generally expect the American economy to have created a total of 235,000 jobs last month.The Dow Jones Industrial average dropped 133.35 points to 18,070.02, the Nasdaq declined 24.38 points to 4,955.52 and the S&P 500 index dropped 14.66 points to 2,093.12.Some analysts suggested investors were selling stocks ahead of the U.S. government’s jobs report since a stronger than expected report could persuade the Fed to move sooner than later in raising interest rates. Markets generally expect the Fed to raise rates sometime this year.The base metals sector led TSX decliners, down 2.25 per cent while May copper was a penny lower at US$2.65 a pound.The TSX energy sector slipped 1.55 per cent and crude prices moved into the negative column after the U.S. Energy Information Administration reported a jump in crude supplies that was much more than what analysts expected. Crude inventories rose by 10.3 million barrels last week, far higher than the expected advance of 3.7 million barrels.The April crude contract in New York was down 77 cents to US$49.75 a barrel.The tech sector was also a major decliner, down 1.1 per cent, while financials were down 0.55 per cent.The gold sector fell 1.55 per cent with April bullion off $3 at US$1,201.40 an ounce.On the earnings front, Torstar Corp. (TSX:TS.B) posted fourth-quarter net income attributable to equity shareholders of $20.6 million or 26 cents per share, almost unchanged from a year ago despite lower revenue. The newspaper publisher said segmented revenue was $244.9 million, down 9.8 per cent from a year ago, mostly reflecting lower print advertising revenue. Its shares fell 19 cents to $7.29.Investors also digested a positive reading on the American non-manufacturing sector from the Institute for Supply Management. Its February index rose to 56.9 last month from 56.7 in January.At mid-afternoon, the Federal Reserve releases its most recent regional economic survey.Meanwhile, China’s premier, Li Keqiang, is expected to lower this year’s official growth target to seven per cent from last year’s 7.5 per cent when he makes an annual appearance before the national legislature on Thursday to announce government economic plans.The lower target is part of the ruling Communist party’s effort to reduce China’s reliance on trade and investment and encourage more self-sustaining growth based on domestic consumption and service industries. read more