(RTTNews) – Canadian stocks closed modestly lower on Wednesday as traders refrained from big moves and dissected the implications of last week’s rate cut by the Bank of Canada amid assurances on the nation’s economic future by Prime Minister Mark Carney.
After moving to the upside early in the session, the benchmark S&P/TSX Composite Index gave back ground over the course of the trading day before closing down by 58.68 points (or 0.20%) at 29,756.95.
Yesterday, the index crossed the 30,000-point threshold for the first time in its history. Despite notching a new peak, it later fell in the previous session.
Five of the 11 sectors posted gains today with Energy sector leading the pack.
Following three consecutive holds, the Bank of Canada resumed its rate cutting cycle in its recent meeting last week.
On September 17, the central bank cut its benchmark interest rate by 25 basis points to 2.5%. The rate cut was largely expected by the market.
The Bank of Canada reported that exports dropped almost 27% in the second quarter of 2025, causing real GDP to contract by 1.6%. The unemployment rate climbed from 6.6% to 7.1% between February and August.
Yesterday, while speaking at the Saskatchewan Trade and Export Partnership and the Greater Saskatoon Chamber of Commerce, Bank of Canada’s Governor Tiff Macklem lamented that Canada waited too long to reduce its dependence on the US economy. Macklem acknowledged that the Canadian and global economies are on permanently lower paths due to high US tariffs.
After attending the UN General Assembly in New York, Prime Minister Mark Carney optimistically stated that there are many possibilities for Canada to build something better.
Carney used the General Assembly to meet with CEOs and world leaders as a part of his efforts to diversify Canada’s trade and economic opportunities, away from the US.
Carney also stated that trade negotiations with the US were ongoing, with remaining issues to move to a forthcoming review of the Canada-United States-Mexico-Agreement. He added that he had “constructive” trade talks with Chinese Premier Li Qiang, with both countries seeking to discuss trade conflicts.
Being slapped by the US with 35% tariffs on all exports to the US, Canadian economy is battling to find a direction. Though exemptions under the Canada-United States-Mexico Agreement shielded many Canadian goods, sector-specific tariffs are eroding growth and weakening the labor market.
Canadian Foreign Affairs Minister Anita Anand is set to travel to China and India in the weeks ahead as Canada looks to improve its strained ties with the two major Asian economies.
On the business front, according to WSJ reports, Canada’s Bank of Montreal is exploring a potential sale of a few of its branches in the US that hold nearly $6 billion in deposits.
Manulife Financial Corp’s wealth and asset management arm reported on Wednesday that it has signed an agreement to buy UK asset manager Schroders’ business in Indonesia.
Data released by Statistics Canada today revealed that Canada’s manufacturing sales are expected to fall 1.5% in August.
Major sectors that gained in today’s trading were Energy (1.34%), Healthcare (0.80%), Utilities (0.48%), and Industrials (0.25%).
Among the individual stocks, Cenovus Energy Inc (3.25%), Vermillion Energy Inc (2.87%), Canadian Natural Resources Ltd (2.50%), and Finning Intl (3.13%) were the prominent gainers.
Major sectors that lost in today’s trading were Communication Services (0.43%), Financials (0.66%), Materials (0.83%), and Real Estate (0.91%).
Among the individual stocks, Cogeco Communications Inc (1.44%), Dundee Precious Metals Inc (5.78%), K92 Mining Inc (5.62%), and Brookfield Asset Management Ltd (2.96%) were the notable losers.
Capstone Mining Corp (11.25%), Ivanhoe Mines Ltd (9.39%), and Lundin Mining Corp (8.64%) were among the prime market-moving stocks today.
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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