TORONTO — Doubts about Russia's promised troop withdrawal from the Ukrainian capital pushed Canada's main stock index off its record high while the loonie moved above 80 cents to its highest level in nearly five months.
The S&P/TSX composite index was down 11.26 points from Tuesday's record close to 22,075.96.
In New York, the Dow Jones industrial average was down 65.38 points at 35,228.81. The S&P 500 index was down 29.15 points at 4,602.45, while the Nasdaq composite was down 177.37 points at 14,442.27.
The decreases marked a partial reversal from Tuesday's moves with equities giving back some of the gains and commodities clawing back some of the losses, said Colin Cieszynski, chief market strategist at SIA Wealth Management.
"The catalyst for what so far appears to be an ordinary correction has been questions over whether Russia moving some of its troops away from Kyiv while talks continue is a withdrawal or a repositioning," he wrote in a note to clients.
U.S. Pentagon spokesman John Kirby said it appears Russia is pulling troops away from Kyiv in order to resupply and reorganize them for use elsewhere in Ukraine — not to send them back to Russia.
Moscow officials had said earlier this week that they were significantly reducing military operations in the Kyiv area as a gesture to advance peace talks. But Ukrainian and U.S. officials have expressed skepticism about Russian intentions.
Technology led the TSX lower, decreasing 2.3 per cent with Shopify Inc. dropping 5.4 per cent in a reversal from Tuesday's gains.
The heavyweight financials sector was also lower as bond yields fell with two- and 10-year U.S. bonds briefly inverting in a signal of a potential recession to come.
Materials led the six sectors that rose on the day. It gained 1.5 per cent as shares of Lithium Americas Corp. climbed 11.7 per cent.
The sector moved up as metals prices rose, with the June gold contract up US$21 at US$1,939.00 an ounce and the May copper contract up two cents at US$4.75 a pound.
Energy, which has propelled the TSX higher in reaction to the invasion of Ukraine, gained ground as crude prices rose.
The May crude oil contract was up US$3.58 at US$107.82 per barrel and the May natural gas contract was up 27.5 cents at US$5.61 per mmBTU.
Advantage Oil & Gas Ltd. led the sector by increasing 2.8 per cent.
Crude prices moved higher after the U.S. Energy Information Administration reported inventories decreased by 3.4 million barrels last week for a bigger drop than was expected.
The price movement comes a day before OPEC and its allies meet to consider whether to add supply amid sanctions against Russia due to the ongoing war in Ukraine.
The Canadian dollar moved to its highest level since early November, trading for 80.19 cents US compared with 79.94 cents US on Tuesday.
U.S. ADP private payrolls slightly beat expectations in a possible positive signal for Friday's jobs report for March.
Meanwhile, Lululemon Athletica shares jumped in the U.S. after the clothing retailer reported Tuesday evening strong fourth-quarter and 2021 financial results.
And shares of Dollarama Inc. increased 3.6 per cent after the Montreal discount retailer posted strong quarterly results and said it will sell items for up to $5.
This report by The Canadian Press was first published March 30, 2022.
Companies in this story: (TSX:AAV, TSX:SHOP, TSX:LAC, TSX:DOL, TSX:GSPTSE, TSX:CADUSD=X)
— With files from The Associated Press.
Ross Marowits, The Canadian Press
