Toronto stocks slipped Tuesday, as oil prices eased off the previous session’s record high, sending the energy sector lower. Meanwhile, New York markets were up, calmed by the lower price of crude and an expected rate hike from the U.S. Federal Reserve.

The S&P/TSX composite index finished down 28.45 points, or 0.27%, to close 10,585.90.

Volume on Canada’s senior exchange was 256 million shares.

Six of the 10 TSX main sub-groups were up, but the energy sector dragged down the broader index, falling 1.04%.

Oil prices fell from a record peak of US$63.94 on Tuesday as dealers took profits, though supply and global insecurity worries lingered. Light sweet crude for September delivery fell 87¢ settling at US$63.07 a barrel.

Western Oil Sands dropped $2, or 6.15%, to close $30.50, while Imperial Oil Ltd. fell $1.05, or 0.91%, to $114.48.

The information technology sector rose 0.47%, boosted for the second straight session by Nortel Networks, which gained 12¢, or 3.33%, to close $3.72. Yesterday, the embattled telecommunications equipment maker announcing a US$45 million profit in the second quarter.

However, CryptoLogic Inc. fell $4.95, or 17.07%, to $24.05 after the online gambling software developer revealed it might lose a key licensee, Betfair.

The junior S&P/TSX Venture composite index finished down 6.54, or 0.36%, to 1,832.75.

The Canadian dollar strengthened versus the U.S. currency on Tuesday, supported by near-record oil prices, while the greenback failed to gain any ground despite the Federal Reserve’s decision to increase interest rates.

The loonie finished at US82.39¢, up from US82.28¢ at Monday’s close.


The Fed raised its key federal funds rate by 0.25% to 3.5%, the 10th consecutive quarter-point rate hike from the Federal Reserve.

In the wording of its release, the Fed gave every indication it would continue to tighten monetary policy at a “measured” pace, but also said that it considered inflation under control.

On Wall Street, the Dow Jones industrial average rose 78.74, or 0.75%, to 10,615.67 after three consecutive sessions of losses. The tech-heavy Nasdaq composite index rose 9.80, or 0.45%, to 2,174.19. The S&P 500 index rose 8.25, or 0.67%, to 1,231.38.

In other U.S. economic news, the Labor Department reported productivity rose 2.2% in the second quarter, down from 3.2% in the first three months of this year. The rise in labour costs slowed in the second quarter to an annual rate of 1.3%, a possible sign that inflation pressures are not building.