TSX End Lower After Fed Policy Decesion -- Canadian Commentary

(RTTNews) - Canadian stocks ended lower Wednesday, after the U.S. Federal Reserve went ahead with another cut to its monetary stimulus plan while indicating guidelines when interest rates will be raised.

The Federal Reserve on Wednesday trimmed another $10 billion from its monthly asset-purchase program, lowering the monthly bond buys to $55 billion. The central bank altered its forward guidance on interest rates, dropping its 6.5 percent unemployment target in favor of a broader range of indicators.

Meanwhile, the Fed reiterated its promise to keep interest rates exceedingly low for the foreseeable future with 13 of 16 members not expecting the first rate hike until 2015, reflecting a somewhat dimmer view of the U.S. economic recovery. Members now project the economy will grow no faster than 3.0 percent this year instead of the 3.2 percent prediction under its December forecast, due in part to a winter lull brought on by unusually cold weather.

The S&P/TSX Composite Index closed Wednesday at 14,334.04, down 34.94 points or 0.24 percent. The index scaled an intraday high of 14,380.91 and a low of 14,297.35.

Crude oil ended higher despite an official report from the Energy Information Administration showed crude oil inventories in the U.S. to have jumped more than expected last week, even as developments in in the Crimea region after an overwhelming vote on Sunday weighed on sentiments.

Earlier today, data from the Energy Information Administration revealed U.S. crude oil inventories to have jumped by 5.9 million barrels in the week ended March 14, while analysts expected an increase of 2.6 million barrels. Gasoline stocks dropped by 1.5 million barrels last week, with analysts anticipating a decline of 1.6 million barrels. Inventories of distillate, including heating fuel, dropped by 3.1 million barrels, even as analysts anticipated a decline of 0.9 million barrels.

The American Petroleum Institute also said its data for last week showed crude stockpiles to have increased by 5.9 million barrels.

The Energy Index gained 0.19 percent, with U.S. crude oil futures for April delivery, gaining $0.67 or 0.7 percent to close at $100.37 a barrel a barrel Wednesday on the Nymex.

Among energy stocks, Suncor Energy Inc. (SU.TO) added 0.52 percent, while Enbridge Inc. (ENB.TO) slipped 0.28 percent. Canadian Natural Resources Ltd. (CNQ.TO) added 0.89 percent, while Encana Corp. (ECA.TO) dropped 0.83 percent.

Athabasca Oil Corp. (ATH.TO) dived 4.05 percent after reporting a $40.1-million loss for the fourth quarter of 2013.

The Global Gold Index plunged 3.03 percent, with gold futures for April delivery, dropping $17.70 or 1.3 percent to close at $1,341.30 an ounce Wednesday on the Nymex.

Among gold stocks, Kinross Gold Corp. (K.TO) dropped 2.35 percent, while Barrick Gold Corp. (ABX.TO) shed 3.41 percent. Detour Gold Corp. (DGC.TO) plunged 6.70 percent, while Goldcorp Inc. (G.TO) surrendered 2.72 percent.

The Capped Materials Index dived 1.82 percent, with Potash Corp. of Saskatchewan Inc. (POT.TO) adding 0.34 percent.

The heavyweight Financial Index shed 0.14 percent with the Toronto-Dominion Bank (TD.TO) down 0.29 percent, Bank of Nova Scotia (BNS.TO) down 0.23 percent, and Royal Bank of Canada (RY.TO) down 0.08 percent.

The Diversified Metals & Mining Index dropped 1.94 percent, with Teck Resources Limited (TCK.B.TO) down 1.87 percent, Lundin Mining Corp. (LUN.TO) down 0.80 percent, and First Quantum Minerals (FM.TO) dropping 2.51 percent.

The Information Technology Index moved up 0.93 percent, with BlackBerry Limited (BB.TO) down 4.78 percent.

The Capped Industrials Index shed 0.24 percent, with Bombardier Inc. (BBD.B.TO) down 2.15 percent. Air Canada (AC.B.TO) gained 1.01 percent.

Power Financial Corp. (PWF.TO) dropped 1.26 percent after reporting a profit of $593 million or $0.84 per share for the fourth quarter, compared with $277 million or $0.39 per share in 2012.

Onex Corp. (OCX.TO) gained 0.46 percent, on news reports that Blackstone Group LP is planning to raise its bid for Gates Global Inc., owned by Onex and the Canada Pension Plan Investment Board.

In Canada, Prime Minister Stephen Harper named Joe Oliver as the new finance minister, following the resignation of Jim Flaherty, who served the federal cabinet for over eight years. Oliver, who headed the natural resources ministry had spent decades in Bay Street, working as an investment banker.

In economic news, British unemployment during August to October was recorded at 2.33 million, down 63,000 from the same period last year, the Office for National Statistics said Wednesday. At the same time, employment increased 105,000 to a record 30.19 million due to more self-employed people. The jobless rate came in at 7.2 percent, the same as seen in the final quarter of 2013, but down from 7.4 percent in the three months to October. The number of people claiming unemployment benefits in February decreased by 34,600 from January, while it was forecast to drop by 25,000.

Meanwhile, the U.K. economy is set to grow faster-than-expected in the next two years, latest forecasts announced by Chancellor George Osborne revealed Wednesday. Citing projections from the Office for Budget Responsibility, Osborne said in his annual budget speech that the economy is set to expand 2.7 percent this year, which is much greater than the December prediction of 2.4 percent.

From the U.S., the country's current account deficit narrowed to a seasonally adjusted $81.1 billion in the final three months of 2013, from a revised deficit of $96.4 billion.