(MENAFN - Baystreet.ca) Canada's main stock index stayed above breakeven Wednesday, as investors adopted a cautious approach ahead of the Federal Reserve's policy statement which seemed to put the kibosh on future interest rate cuts.
The S&P/TSX Composite Index stayed buoyant 8.44 points to end the day at 16,511.79
The Canadian dollar grew 0.53 cents to 75.29 cents U.S.
Tech stocks made up the leading subgroup, mostly on the shoulders of Shopify, which sprang up $27.13, or 6.7%, to $434.32, while BlackBerry gained a quarter, or 2.2%, to $11.92.
Communications had a positive day, as Cogeco picked up $1.44, or 1.6%, to $94.27, while Cineplex was boosted 27 cents, or 1.1%, to $23.93.
Gold pointed higher, primarily Torex Gold, which acquired 45 cents, or 3.4%, to $13.85, while Semafo increased 14 cents, or 2.8%, to $5.07.
Energy ran out of gas, so to speak, as Gran Tierra Energy withered 35 cents, or 13.6%, to $2.23, while Peyto Exploration dropped 13 cents, or 3.2%, to $3.94.
Among materials, Canfor Corp. lost 33 cents, or 2.9%, to $11.10, while Interfor dipped 54 cents, or 3.7%, to $14.03
Real-estate issues suffered, too, as units of Interrent REIT stepped back 38 cents, or 2.6%, to $14.08, while Dream Industrial REIT fell 24 cents, or 2%, to $12.03.
On the economic front, Statistics Canada reported that the Consumer Price Index (CPI) rose 2.4% on a year-over-year basis in May, following a 2.0% increase in April.
On a seasonally adjusted monthly basis, the CPI rose 0.3% in May.
The TSX Venture Exchange sank 0.14 points to close Wednesday at 584.61
Eight of the 12 Toronto subgroups remained in the red, as gold and materials each slipped 1.1%, while consumer staples fizzled 0.4%.
Financials led the four gainers, up 0.7%, while communications were better by 0.5%, and health-care took on 0.4%.
Stocks rose on Wednesday, bolstering their gains for the month, after the Federal Reserve opened the door for looser monetary policy in the near future.
The Dow Jones Industrial Average finished positive 38.46 points to 26,504
The S&P 500 added 8.71 points to 2,926.46.
The NASDAQ Composite reacquired 33.44 points to 7,987.32
Health-care stocks, which typically perform well after the Fed cuts rates, were the best performers on Wednesday. The sector rose 1%, led by gains in Allergan and DaVita.
Banking stocks moved downward, Citigroup, Morgan Stanley, J.P. Morgan Chase and Bank of America all traded lower.
The Fed kept interest rates unchanged at the meeting, as was widely expected. While not outright signaling a cut was ahead this year, the Fed did drop the word 'patient ' from its statement and said it would 'act as appropriate' to sustain the economy.
The central bank's rate projections, released alongside the statement on Wednesday, showed that eight Fed members see a cut this year, which traders took as further sign the central bank was close to cutting rates. Its median forecast, however, still reflected no cuts this year, but additional easing in 2020.
Fed Chair Jerome Powell also said in a news conference after the announcement that some Fed officials believed the case for easier monetary policy had strengthened.
Expectations of lower rates helped the market rebound this month after a torrid performance in May. The S&P 500, Dow and NASDAQ are all up more than 6% in June.
Prices for the benchmark 10-year U.S. Treasury gained sharply, causing yields to fade to 2.03% from Tuesday's 2.06%. Treasury prices and yields move in opposite directions.
Oil prices regained 42 cents to $54.32 U.S. a barrel.
Gold prices re-strengthened $9.40 at $1,348.30 U.S. an ounce.