The Toronto Stock Exchange 300 composite index is weakening ahead of this afternoon’s hotly-anticipated interest rate decision from the U.S. Federal Reserve. At midday, the TSE 300 is down 64 points to 7548. Volume is not unexpectedly light at 67.6 million shares, with down volume holding a 2:1 edge over the up volume. Market breadth is more even, with losers still holding a better than 5:4 edge on winners.

The big losers today are the banks, down about 2.7% after TD Bank announced that it is upping its loan loss provisions to protect against future losses from tech and telecoms. Energy stocks are also notably weak as oil prices slide on news of an energy inventory report which revealed higher than expected stockpiles of gasoline and crude oil. The upside is limited, but there is some strength in miners, real estate and tobacco stocks.

The banks are the big trade today for a change, with TD Bank leading the way down. It has dropped about 3.5% on 2.2 million shares. Bank of Montreal is right on its heels, dropping 2.8% in active trading. Royal and CIBC are down about 2.5% each too.

Energy stocks are the other big sell today. Imperial Oil, Petro Canada and Gulf Canada Resources are all down in heavy trading too. The energy trusts are all taking a beating today too, as some of the air comes out of the sector’s stocks.

Nortel Networks is down among techs, which are about flat overall. Rumours of more layoffs at JDS Uniphase is hurting sentiment in the sector. There are similar rumours around Lucent Technologies too. Strength in the techs is coming from ATI, which reported better than expected earnings today. Also, Sierra Wireless, Descartes Systems and Research in Motion are all up.

Other gainers are a mixed bag, including CCL Industries, Zenon Enviro and Global Thermoelectric.

In New York, stocks are holding up better, but trading is constrained ahead of the interest rate decision. The Dow Jones industrial average is currently up 39 points to 10511. The Nasdaq composite index has added 14 points to 2078. The S&P is up a single tick to 1218.

The CDNX is following the TSE down today, it is off 14 points to 3216. Volume is on the light side there at 16.1 million shares. Miners are up, but oils and techs are off. Genoil Inc is the top trader, up 15% to 30¢ on 3.9 million shares. In fact, Genoil has been so popular with CDNX traders thatthe exchange has asked it to comment on the action. It issued the time-honoured statement, that “there have been no material developments in Genoil,” to explain the move.