Canada’s main stock index edged higher on Wednesday, boosted by consumer discretionary and technology stocks, as investors awaited U.S. inflation data later this week for potential clues on interest rate cuts.
At 10:08 a.m. ET (1508 GMT), the Toronto Stock Exchange’s S&P/TSX composite index was up 24.07 points, or 0.11%, at 20,995.05.
Across the border, Wall Street’s main indexes also gained as U.S. Treasury yields eased. Canada’s ten-year benchmark yield also inched lower.
Consumer discretionary stocks led the charge on Wednesday, rising 0.6%, followed by technology shares, which gained 0.4%.
“The fact that Treasury yields and Government of Canada yields are slightly lower is helping tech and some of the growth parts of the market outperform today”, said Angelo Kourkafas, senior investment strategist at Edward Jones.
Energy shares gained 0.3% as oil rose around 1% in a second day of gains. [O/R]
However, the healthcare sector was a drag, falling 2.5% as cannabis company Tilray Brands tumbled 7.1%, extending losses from the previous session.
The materials sector slipped 0.7%, tracking prices of precious metals lower. [GOL/]
Canadian markets have had a tepid start to the week as investors nervously await U.S. consumer prices data due on Thursday that will test expectations that rate cuts by the Federal Reserve could begin as early as March.
“It (the first rate cut) might be a little later, but nevertheless, doesn’t change the fact that most likely we’re going to see the Fed and Bank of Canada’s policy easing in the back half of the year,” said Kourkafas.
Investors also await the quarterly figures from big U.S. banks such as JPMorgan Chase on Friday.
Africa Oil Corp shares rose over 6% after the company announced a farmout transaction for its offshore Namibia interests.
Source: https://ca.news.yahoo.com/futures-signal-tepid-open-tsx-123317216.html
