TSX Lower As BoC Stands Pat -- Canadian Commentary

(RTTNews) - Canadian stocks fell Wednesday, with weakness in the heavyweight energy and financial sectors after the Bank of Canada held steady on interest rates.

The BoC stood pat despite strong economic growth and concerns about a potential bubble in big-city housing. Analysts expect the BoC will maintain current interest rates through the rest of year, fearing weak inflation.

Meanwhile, the U.S. Federal Reserve will soon raise interest rates again and wind down its bloated balance sheet, the central bank said this afternoon.

The TSX Composite Index was down 57.45 points, or 0.37 percent, to 15,419.49.

Financials lost 0.85 percent, while, energy stocks fell 1 percent. Gauges of most sectors were in the red.

Bank of Montreal (BMO.TO) said second quarter earnings advanced 12% from last year. BMO also boosted its divedend, but the stock fell 3.5% today.

Yesterday, Barclays upgraded Canada's big five banks, noting fears about Home Capital (HCG.TO) contagion are overblown.

Barclays wrote to clients: "We do not believe any near- or even medium-term concerns are warranted and view the decline in valuations as a now-compelling entry point."

Royal Dutch Shell has decided to sell a nearly $4.1-billion stake in Canadian Natural Resources (CNQ.TO), Reuters reports. CNQ lost 0.6 percent.

Canada's stock exchange operator TMX Group (X.TO) plans to expand its use of blockchain technology. Sharaes fell 2 percent.

Crude oil futures nudged lower Wednesday, trimming recent gains despite word that OPEC will agree to extend its supply quota plan.

July West Texas Intermediate crude lost 11 cents, or 0.2%, to settle at $51.36 a barrel on the New York Mercantile Exchange.

Data from the U.S. Energy Information Administration showed that domestic crude supplies fell by 4.4 million barrels for the week ended May 19, as refineries stepped up production.