Canada Stocks: TSX posts biggest weekly gain in 11 months on Fed optimism (updated)

Ballard Power Systems

13/09/2024 21:36

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      TSX ends up 0.4% at 23,568.65
    

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      For the week, the index gains 3.5%
    

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      Materials group rises to highest since April 2022
    

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      2-year yield falls to 2-year low
    

  
 (Updates at market close)
    By Fergal Smith
       Sept 13 (Reuters) - Canada's main stock index rose to an
all-time high on Friday in a broad-based rally, led by mining
stocks, as expectations rose the U.S. Federal Reserve would opt
for an oversized interest rate cut at a policy decision next
week.
    The Toronto Stock Exchange's S&P/TSX composite index
 .GSPTSE  ended up 93.51 points, or 0.4%, at 23,568.65, moving
past the record closing high it set on Thursday. For the week,
the index was up 3.5%, its biggest weekly gain since October.
    "This is the everything rally going on. We've got equities
up, we've got bonds working, commodities going," said Greg
Taylor, a portfolio manager at Purpose Investments. 
    "We're getting a lot of expectations that the Fed next week
is going to do a 50 basis-point cut. Markets seem to be cheering
that on."
     Wall Street's main indexes also rose as investors priced in
a near 50% chance of a half-percentage-point reduction in
interest rates by the Fed at a policy decision due on Wednesday.
    The Toronto market's materials group, which includes
fertilizer companies and metal mining shares, rose 1.5% as gold
and copper prices climbed, notching its highest closing level
since April 2022.
    Technology added 0.7% and real estate, which could
particularly benefit from lower borrowing costs, ended 2.1%
higher.
    Canada's 2-year yield  CA2YT=RR  fell nearly 6 basis points
to 2.945%, its lowest level in more than two years.
    The Canadian government will not intervene to end a dispute
between Air Canada  AC.TO  and its pilots and intends instead to
pressure both sides to avert a strike, Prime Minister Justin
Trudeau said. Air Canada's shares ended nearly 1% higher.

 (Reporting by Fergal Smith in Toronto and Nikhil Sharma in
Bengaluru; Editing by Maju Samuel and Marguerita Choy)
 ((fergal.smith@thomsonreuters.com; +1 647 480 7446))