Canada Stocks: TSX hits record high after GDP data, set for monthly gain

Cameco

29/11/2024 16:05

(Updated at 10:14 a.m. ET/ 1514 GMT)
    By Nikhil Sharma
       Nov 29 (Reuters) - Canada's main stock index hit a
record high on Friday after data showed the economy grew at an
annualized rate of 1% in the third quarter, raising expectations
for a larger interest-rate cut by the Bank of Canada next month.
    The S&P/TSX composite index  .GSPTSE  was up 83.72 points,
or 0.33%, at 25,627.24 and was on track to hit its fifth
straight monthly gain. 
    Data showed third-quarter gross domestic product growth was
less than the BoC's projection of 1.5%.
    The GDP came in below expectations at 0.1% on a monthly
basis.
    "It's showing a weaker than expected economy for Canada,
which is not surprising for anybody living here," said Shiraz
Ahmed, senior portfolio manager and founder of Sartorial Wealth
at Raymond James. 
    "We're seeing a little bit of a positive bounce here" that
reflects "there will be future rate cuts coming in Canada and
perhaps even a larger one." 
    Traders see a 43.5% chance of a 50-basis-point cut at the
December policy meeting, up from 30.7% seen earlier.
 0#BOCWATCH 
    The central bank reduced borrowing costs by 125 basis points
to 3.75% in its past four meetings in a bid to boost growth,
after inflation cooled to reach its target range. 
    The TSX index was on track to hit its biggest monthly rise
in a year, if gains hold, partly aided by the global stock
market rally that followed Donald Trump's election victory. 
    The benchmark index was set to end in green for the week,
despite initial investor concerns about Trump's pledge to impose
a 25% tariff on imports from Canada and Mexico.
    Among sectors, the materials sector  .GSPTTMT  rose 0.6% as
gold prices gained due to a weaker greenback and geopolitical
woes.  GOL/ 
    Energy Fuels  EFR.TO​  led the index with a 4.6% gain.
    Trading volumes were lighter than usual as the U.S. markets
were closed for half a day.

 (Reporting by Nikhil Sharma in Bengaluru; Editing by Shreya
Biswas)
 ((Nikhil.Sharma@thomsonreuters.com;))