TSX May Start Lower As Selloff Continues Post Fed Report

Canada's benchmark index looked set to continue Wednesday's selloff, which was spurred by the US Federal Reserve's report that was "not nearly as dovish" as many onlookers had expected.

Stock futures for the December quarter on the S&P TSX index were down 0.5% recently.

The Fed, as expected, increased borrowing rates for the fourth time this year but provided a cautious outlook for the US economy in 2019 at the same time. Given a dimmer projection, the Fed said it would slow down rate hikes next year.

Meanwhile, oil will also put pressure on the TSX. Action Economics said investor risk aversion on concerns about global growth and the impact on crude demand have weighed on crude markets, even as OPEC has vowed further output cuts.

The TSX lost more than 150 points on Wednesday.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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