By Fergal Smith
(Reuters) – Canada’s main stock index fell by the most in two weeks on Wednesday as the Federal Reserve’s signal that an interest rate cut was not imminent led to broad-based declines.
The Toronto Stock Exchange’s S&P/TSX composite index ended down 205.99 points, or nearly 1%, at 21,021.88, its biggest decline since Jan. 17.
U.S. stocks also closed sharply lower after the Fed held interest rates steady while reiterating that despite progress, inflation risks remain and dashed hopes for an interest rate cut as soon as March.
“The Fed is still concerned that inflation could reaccelerate with the economy running hot,” Nathan Janzen, assistant chief economist at Royal Bank of Canada, said in a note. “But we continue to expect a pivot to interest rate cuts by mid-year.”
All 10 major sectors on the Toronto market ended lower. Heavily weighted financials lost 1.1% and energy was down 1.2%.
The price of oil settled 2.5% lower at…
