Canada's main stock market was weaker in the midweek trading session after the U.S. Federal Reserve lifted a key U.S. interest rate 25 bps to a range of 1.75% to 2% and signaled it will raise the cost of borrowing a total of four times this year. The S&P/TSX Composite Index was down 23 points or 0.1% to close at 16,265. U.S. markets were mostly in the red, with the Dow Jones losing about 120 points.
Most of the TSX sectors were in negative territory, but modestly so, including energy and consumer issues, while healthcare and financials led advancers. Crude oil prices gained 0.4% while gold was up 0.2%.
In stock news, heavily traded Katanga Mining (KAT.TO) gained 3% after the company settled a mining dispute with the DRC on Tuesday while Aurora Cannabis (ACB.TO) was up 2%. Nemaska Lithium (NMX.TO) lost 3%.
In economic news, the Teranet/National Bank House Price Index climbed 1.0% in May (m/m) for the 11 city composite after the 0.3% rise in April, flat reading in March and 0.1% dip in February, suggestive of stabilization following the downtrend seen in the second half of 2017 and early 2018. The HPI grew at a 4.5% y/y pace in May. Toronto home prices rose 1.3% m/m, slipping only 0.3% y/y. Vancouver home prices were up 1% m/m and 15.4% y/y. The report tracks BoC projections for stabilization in the housing market after government measures pulled activity to late 2017 from early 2018.
Looking further ahead, May existing home sales (due Friday), the April manufacturing survey (also Friday) and Q1 national balance sheet and financial flow accounts (Thursday) feature later this week. Manufacturing shipment values are expected to climb 1.0% in April after the 1.4% gain in March. Existing home sales are seen falling 1.0% in May (m/m) after the 2.9% decline in April. The national balance sheet and financial flow account report should show a drop in the household debt ratio relative to Q4. The new housing price index (Thursday) is projected to fall 0.1% in April (m/m) after a flat reading in March.
The loonie gained a fifth of a cent to 77.01 US.