TSX tumbles after central bank comment, Ottawa shooting
By John Tilak TORONTO (Reuters) - Canada's main stock index dropped on Wednesday after a four-day winning streak as investors reacted nervously to monetary policy commentary from the Bank of Canada and news of shootings in Ottawa. A drop in the price of U.S. crude oil, which pulled energy shares lower, also weighed. The Bank of Canada dropped any reference to taking a neutral stance on interest rates, having already signaled it would generally not give forward guidance on rate moves. Investors also processed news that a gunman shot and fatally wounded a soldier in Ottawa and then entered the country's parliament buildings chased by police. A suspected gunman was shot dead inside the parliament building, a government minister said. In a separate incident, a Canadian soldier was shot at the National War Memorial in downtown Ottawa, media and witnesses reported. "(The shooting) contributes to the negative sentiment," said Elvis Picardo, strategist at Global Securities in Vancouver. "The fact that the shooting happened in Ottawa may have rattled investors. Investors should be cautious about the ramifications." But he said that it was too early to gauge the long-term impact of such an event. The benchmark index had rebounded in the previous four sessions after hitting an eight-month low last week. "I think today's market decline is a normal market consolidation after a significant bounce off a bottom," said David Cockfield, managing director and portfolio manager at Northland Wealth Management. "The events in Ottawa could also be having an impact on market psychology." The Toronto Stock Exchange's S&P/TSX composite index <.GSPTSE> was down 202.15 points, or 1.39 percent, at 14,345.56. All 10 main sectors on the index were in the red. Financials, the index's most heavily weighted sector, fell 1.2 percent. Royal Bank of Canada lost 1.1 percent to C$79.24, and Bank of Nova Scotia dropped 1.8 percent to C$66.71. Shares of energy producers shed 2.2 percent, reflecting a 1.5 percent drop in the price of U.S. crude oil . Suncor Energy Inc gave back 1.9 percent to C$38.13, and Talisman Energy Inc was down 3.1 percent at C$7.48. (Editing by James Dalgleish)
