Canada Stocks: Toronto stocks jump on optimism around US rate cut

Celestica

09/09/2024 16:07

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      TSX up 1.2%
    

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      Healthcare and technology lead the sectoral gains
    

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      Methanex to acquire OCI's methanol business, shares fall
    

  
 (Updated at 10:11 a.m. ET/ 1411 GMT)
    By Nikhil Sharma
       Sept 9 (Reuters) - Canada's main stock index rose over
1% on Monday in a broader rally led by technology and healthcare
stocks, as investors looked forward to the U.S. Federal Reserve
initiating a rate cut cycle in September.
    At 10:11 a.m. ET (14:11 GMT), the Toronto Stock Exchange's
S&P/TSX composite index  .GSPTSE  was up 271.77 points, or
1.19%, at 23,053.2 and was set to rebound after it fell to a
more than three-week low on Friday.
    All major sectors on TSX logged gains led by the information
technology sector  .SPTTTK  that rose 2.1%, supported by
Celestica  CLS.TO  rallying 6.4%, and healthcare  .SPTTTK 
sector advancing 2% as it benefited from a 5.5% jump in cannabis
firm Tilray Brands  TLRY.TO .
    The Fed is widely expected to offer a 25-basis points
reduction at its next policy meeting on September 18 with
investors also expecting a slim 27% chance of 50 bps cut.
 0#FEDWATCH 
    "There're definitely some voices out there that want 50 (bps
cut). If we're cutting 50 because we think the soft landing is
in full effect and we're trying to catch up with inflation, then
maybe the market starts rolling again," said Nicolas
Katsiyianis, head of research at Eight Capital.
    Among a series of data expected later in the week, the U.S.
consumer prices data on Wednesday will be in focus as it could
further highlight the commencement of the interest rate-cutting
cycle.
    Data on Friday showed that the U.S. labor market was cooling
but not at a worrying pace, building a case for a soft landing
for the American economy.
    The U.S. presidential debate between Democrat Harris and
Republican Trump will make headlines as the political rivals
brace themselves for the upcoming elections in November.
    In corporate news, Methanex  MX.TO  slides 5% after the
methanol producer agreed to buy Dutch green fuel maker OCI
Global's  OCI.AS  methanol business for $2.05 billion.

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