Toronto stocks finished marginally lower Tuesday, as the Bank of Canada signalled higher interest rates ahead, even as it decided to hold the line on its key rate for now.

The S&P/TSX composite index finished down 9.80, or 0.10%, to 10,207.92.

Volume on the senior exchange was 208 million shares.

The Bank of Canada left the overnight rate unchanged at 2.5%, but indicated that “some reduction in the amount of stimulus will be required in the near term.” The bank’s next scheduled announcement falls in September.

On currency markets, the Canadian dollar gained almost one cent as investors contemplated the likelihood of Canadian rates hikes coming sooner than previously expected. The loonie closed at US83.15¢, up 0.95 of a cent on the day.

Eight of the 10 TSX main sub-groups were down, with the industrials sector falling furthest at 1.02%. The energy sector enjoyed a 0.85% uptick.

Light sweet crude for August delivery climbed $1.68 a barrel to close at US$60.60 ahead of concerns over another tropical storm disrupting oil refineries in the U.S. South and ahead of a weekly oil report that might show a larger than expected draw of crude inventories.

First Calgary Petroleum gained 58¢, or 8.70%, to close $7.25, while Talisman Energy Inc. advanced 65¢, to 1.29%, to close $50.90.

The heavily weighted TSX financial sector ended down a slight 0.04%.

TD Banknorth Inc., a U.S.-based subsidiary of TD Bank Group, said it is paying US$1.9 billion in cash and shares for Hudson United Bank Corp. TD Bank shares gained 10¢, or 0.18%, to close $55.17.

Manulife Financial Corp. gained 98¢, or 1.64%, to close $60.80 as company CEO Dominic D’Alessandro said the insurance company will use its capital to buy back more stock and increase dividends this year, as it hadn’t identified any acquisitions that fit its plans.

The junior S&P/TSX Venture composite index exchange finished down 3.62, or 0.21%, to finish 1,724.26.

The blue chip Dow Jones industrial average fell 5.83, or 0.06%, to 10,513.89. The tech heavy Nasdaq composite increased 7.72, or 0.36%, to 2,143.15;

The S&P 500 rose 2.77, or 0.23% to 1,222.21, just 3 points shy of its four-year high of 1,225.31, reached March 7. The index briefly surpassed that level before edging back in the last hour of trading.