The Toronto stock market was lower as traders hope that the U.S. Federal Reserve will deliver another round of stimulus to help lift a struggling economy.

The S&P/TSX composite index declined 16.4 points to 12,216.22 as the Fed wraps up its two day meeting on interest rates at midday.

However, traders are also cautious, realizing that the Fed may not want to launch another round of stimulus with the U.S. election less than two months away.

The Canadian dollar inched up 0.03 of a cent to 102.43 cents US.

New York markets were little changed with the Dow Jones industrials up 4.58 points to 13,337.93, the Nasdaq composite index edged up 1.2 points to 3,115.51, and the S&P 500 index was unchanged at 1,436.56.

Oil prices jumped $1.41 to US$98.42 a barrel after the killing of the U.S. ambassador to Libya sparked new worries about unrest in the Middle East.