Toronto stocks finished lower on Wednesday as a sharp drop in oil prices pushed energy shares lower. The S&P/TSX composite index fell 47.17 points, or 0.5%, to 9,446.42, its second straight session of losses.

The energy sector dropped 1%, while the materials group was next in line with a drop of 0.78%. Six of the 10 main TSX groups finished lower.

Oil prices dropped 3% after the International Energy Agency said growth in world demand was weakening, while the U.S. government said crude inventories were at six-year highs.

A barrel of light crude settled at US$50.45, down $1.62, on the New York Mercantile Exchange.


Petro-Canada shares dropped $1.35, or 1.89%, to $70.25, while Canadian Natural Resources fell $1.30, or 1.86%, to $68.64.

A 1% gain in the information technology sector helped cushion the blow.

The junior S&P/TSX Venture composite index shed 17.75 points or 1.05% to end at 1,668.27.

On Wall Street, a late-session rally fed by falling oil prices pushed stocks higher.

The Dow Jones industrial average rose 19.14, or 0.19%, to 10,300.25.

Broader stock indicators also moved higher. The S&P 500 index was up 4.89, or 0.42%, at 1,171.11, and the tech-heavy Nasdaq composite index gained 8.78, or 0.45%, to 1,971.55.

The news about the U.S. trade deficit, which shrank to its lowest level in six months, also encouraged investors who had feared an economic slowdown.

The U.S. Commerce Department reported that the nation’s trade deficit fell sharply in March as U.S. exports climbed to an all-time high. The deficit narrowed by 9.2% to US$54.99 billion, down from the record monthly deficit of US$60.57 billion set in February.