TSX Collapses Into Negative Territory For Year -- Canadian Commentary

(RTTNews) - Canadian stocks plunged along with oil prices Wedesday, as the U.S. Federal Reserve hiked interest rates despite a rough patch for the world's biggest economy.

Crude oil futures dropped to their lowest since November after OPEC warned the global supply glut may worsen.

Markets also were spooked by downbeat U.S. economic data, as retail sales dropped 0.3 percent in May, while consumer prices dropped 0.1 percent.

The S&P/TSX Composite Index plummeted 209.62 points, or 1.38 percent, and is negative for the year-to-date.

Energy stocks plunged 3.9 percent, while gold shares collapsed by 3.4 percent. It was a sea of red, with gauges of most sectors moving lower.

"Oil has been weighed down by the market's impatience with the generally slow pace of the global inventory drawdown amid a significant recovery in global oil supplies, particularly from the US," OPEC said in its June report.

July WTI oil dropped $1.73, or 3.7%, to settle at $44.73/bbl, the lowest since November.

In corporate news, Aimia Inc (AIM.TO) has suspended payment of all dividends on both its outstanding common shares, following a recent decision from Air Canada to cut ties with the loyalty points group. Three directors also resigned from Aimia this morning.

Shares plunged 20 percent.

TransCanada Corp. (TRP, TRP.TO) said that it will move forward with a new C$2 billion expansion program on its NOVA Gas Transmission Ltd. or NGTL System, based on new contracted customer demand for about 3 billion cubic feet per day or Bcf/d of incremental firm receipt and delivery services. Shares slipped 1.9 percent.

Suncor Energy (SU.TO) pushed back until July its estimates on when full shipments from its Mildred Lake oilsands operation will resume. Shares dropped 3.6 percent.

Marquest has agreed to acquire all of the outstanding shares of Scotia Managed Companies from Scotia Capital. This transaction is not material to Scotiabank (BNS.TO).

The Federal Reserve on Wednesday raised its benchmark interest rate for the third time in three months despite signs the U.S. economy has cooled off in 2017.

The Federal Open Market Committee voted to raise fed funds to between 1% and 1.25% and will start "gradual" shrinking of its $4.5 trillion balance sheet "this year."