Stocks in Canada Fall in Response to U.S. Credit Rating Downgrade

Canadian stocks took a sharp downturn on Wednesday, following the lead of global markets that were reacting to the unexpected credit rating downgrade of the United States by Fitch. The decline was seen across various sectors, with technology services, materials, and producer manufacturing stocks experiencing the biggest drops. The only sector to see minor gains during the session was process industries.

As of midday, Canada's S&P/TSX Composite Index had retreated by 1.65%, settling at 20193.33. The blue-chip S&P/TSX 60 fared slightly worse, tumbling by 1.67% to reach 1211.02.

Cameco, a Canadian uranium producer, saw its shares drop by 7.7% to reach 42.37 Canadian dollars ($31.90). This decline came after the company reported an 83% decrease in profit for the second quarter, primarily due to a C$44 million foreign-exchange loss on its U.S. cash balances.

Other notable movements in the market include:

• Thomson Reuters: Shares rose by 3% to reach C$184.72 following the company's announcement that it had turned a profit in the second quarter. This positive result was driven by the sale of business-management solutions business Elite and an increase in revenue.

• Colliers International: Shares increased by 6% to C$141.98 after the Canadian professional-services and investment-management company maintained its year-end guidance despite experiencing a loss in the recent quarter.

• Bausch + Lomb: The company's stock experienced a 2.1% decrease, settling at C$25.23, after reporting a loss in the second quarter. However, it exceeded revenue growth expectations, with the loss primarily attributed to higher costs during the period.

• EQB: Shares climbed by 4.9% to reach C$81.35 as the parent company of Canada's Equitable Bank raised its earnings forecast for the year and increased its quarterly dividend by almost 3% following a significant profit jump in the second quarter.