CANADA STOCKS-TSX tumbles as miners lead broad declines; Fed in focus
By Rashika Singh
March 18 (Reuters) - Canada's main stock index was set for its biggest single-day drop in more than a week on Wednesday, weighed by a sharp drop in mining shares, while investors assessed the Bank of Canada's latest comments and awaited the U.S. Federal Reserve's policy decision.
At 11:12 a.m. ET, the S&P/TSX Composite Index .GSPTSE was down 1.2% at 32,539.07 points.
The BoC kept its key policy rate on hold on Wednesday as widely expected, but Governor Tiff Macklem said the central bank was ready to raise rates to prevent higher energy prices from broadening into persistent inflation.
"With Canada shedding jobs in February, a housing market losing steam and global energy prices firming on the back of renewed geopolitical conflict, policymakers simply don't have the clarity needed to act," said Michael Constantino, CEO of Webull Canada.
The BoC's comments come as global central banks weigh inflation concerns fanned by surging oil and gas prices amid the Middle East conflict, though Canada is seen as better shielded, being a net oil exporter.
Investors now await the Fed's policy decision and comments, expected at 2 p.m. ET on Wednesday.
The TSX's materials index .GSPTTMT, which houses metal miners, fell 4.5% as precious metal prices dropped, briefly touching its lowest level since January 8.
Spot gold XAU= and silver XAG= slid more than 3% to a one-month low, as investors weighed the risk of a more hawkish U.S. Federal Reserve policy stance. GOL/
Energy shares .SPTTEN inched 0.1% higher, after Iranian media reports that facilities in South Pars and Asaluyeh had come under attack lifted oil prices. O/R
Among notable movers, Boyd Group BYD.TO slumped 16.3% after Canada's collision repair operator missed earnings estimates for the fourth quarter.
Alimentation Couche-Tard ATD.TO also missed analysts' expectations for third-quarter revenue, falling 4.8% and weighing on the consumer staples sector .GSPTTCS, which dropped 2%.
