Another Putrid Day For Canadian Stocks -- Canadian Commentary

(RTTNews) - Canadian stocks failed to sustain early gains Wednesday, as falling commodity prices continued to weaken shares of resource producers.

The S&P/TSX Composite Index was down 96.93 points, or 0.79 percent, to 12,185.72, approaching 3-year lows from mid-January.

Crude oil prices tumbled even though US inventories declined and Iran signaled a willingness to work with OPEC partners on cutting production.

March West Texas Intermediate crude finished at $27.45 a barrel on the New York Mercantile Exchange, down 49 cents, or 1.8%, the lowest since January 20.

As such, energy stocks fell another 2.7 percent. Financials also extended recent losses, dropping 1.5 percent. ' Base metal miners coming off of yesterday's massive losses declined another 3.2 percent.

Gold shares were up 1.8 percent despite gold prices easing from multi-month highs.

There was no positive reaction to dovish commentary from US Federal Reserve Chair Janet Yellen.

Yellen to Congress acknowledged that "downside risks" from exposure to the slowing Chinese economy could hurt the U.S.

Therefore, monetary policy is by no means on a preset course, Yellen said, downplaying expectations the Fed will raise interest rates a few more times in 2016.

Looking at corporate headlines, CN Rail (CNR.TO) is targeting C$2.9 billion in 2016 capital investments to raise network efficiency, support long-term growth, and further strengthen safety. Shares slipped 1.2 percent.

CAE (CAE.TO) reported revenue of $616.3 million for the third quarter of fiscal year 2016, up 10 percent from a year ago. The stock fell 4.5 percent.