Canadian stocks fell to a two-month low as the nation’s largest lenders tumbled to offset a rebound in gold prices after the U.S. Federal Reserve indicated that the pace of interest-rate increases will be gradual.
Toronto-Dominion Bank dropped 0.8 percent to pace declines among financial services firms. Alacer Gold Corp. rallied 8.4 percent as gold climbed. Bombardier Inc. extended its two-day slide to 8 percent as the aircraft maker has been shut out of the Paris Air Show so far.
The Standard & Poor’s/TSX Composite Index fell 20.07 points, or 0.1 percent, to 14,732.98 at 4 p.m. in Toronto. The gauge has advanced 0.7 percent this year, among the worst-performers in developed markets in the world.
Seven of 10 industries in the S&P/TSX advanced on trading volume 5.7 percent lower than the 30-day average. Royal Bank of Canada, the nation’s largest lender, slipped 0.6 percent as financial services firms decreased 0.5 percent as a group, the most in the S&P/TSX.
Barrick Gold Corp. climbed 2.6 percent, the most in a month, and Teck Resources Ltd. added 1.5 percent as raw-materials producers rallied 0.8 percent as a group.
Gold for immediate delivery rose 0.5 percent to $1,188.18 an ounce in New York, erasing an earlier loss.
Fed policy makers signaled a pickup in the economy is keeping it on track to raise interest rates this year, though subsequent increases are likely to be more gradual than anticipated earlier.
The Federal Open Market Committee voted to keep the main rate at zero, where it has been since late 2008. New forecasts issued by the committee implied two quarter-point rate rises this year and a shallower pace of increases in 2016.
Investors are also watching developments in Europe, where Greek Prime Minister Alexis Tsipras said he was ready to take responsibility for rejecting a deal with creditors if the terms are unacceptable. Negotiations are close to a breakdown ahead of a June 18 meeting of euro-area finance ministers in Luxembourg as the next deadline in a saga that opened in 2009.