Financials Weigh on Canada Shares
Canada's benchmark TSE 300 spent the day in negative territory and closed down 81.4 points to 7530.6. The Fed's quarter-point cut was already discounted, and thus did not provide a boost. The continued sell off in the heavily weighted Financial sector was a continued pressure -- on Tuesday it was Merrill Lynch's bad news, and on Wednesday Toronto Dominion Bank gave the bad news. Of the 14 subindices, eight closed down, lead by the Financials. S&P will look for continued losses.
Europe markets ended mixed on Wednesday ahead of the 25-basis-point rate cut by the U.S. Fed. In London, the Financial Times-Stock Exchange 100 index closed higher by 52.20 points, or 0.94%, to 5,607.90. In Germany, the DAX Index fell 14.69 points, or 0.25%, to 5,833.10. In France, the CAC 40 fell 33.01 points, or 0.65%, to 5,057.72.
Asia stocks finished mixed as investors anticipated the size of the Fed's rate cut. Japan's Nikkei index shed 149.84 points, or 1.15%, to 12,828.98. In Hong Kong, the Hang Seng index added 42.24 points, or 0.33%, to 13,004.21.