Canada Stocks: TSX hits one-week high as tech rallies, BoC raises rates

Celestica

28/10/2026 20:21

Updates at market close
By Fergal Smith
TORONTO, Oct 28 (Reuters) - Canada's main stock index rose to a one-week high on Wednesday as energy and technology shares notched gains, offsetting declines for the interest rate sensitive real estate sector after policy decisions by the Bank of Canada and the Federal Reserve.
The S&P/TSX Composite Index .GSPTSE ended up 93.6 points, or 0.3%, at 36,265.09, its highest closing level since last Wednesday .
The Bank of Canada raised its benchmark interest rate by 25 basis points to 2.50%, its first hike in more than three years, and said further increases might be needed to prevent soaring energy costs from fueling broader inflation.
The Federal Reserve held interest rates steady, as expected, opting to delay any changes to borrowing costs until after next week's US midterm elections and awaiting further data on the path of inflation. 
"The Fed appears to be priming a rate hike for December, as we’ve been forecasting," Michael Gregory, deputy chief economist at BMO Capital Markets, said in a note.
Investors see a roughly 85% chance the Fed tightens next month, while they are fully discounting a second BoC hike by January. 0#USDIRPR0#CADIRPR
Technology .SPTTTK rose 1.9% as Celestica CLS.TO added to the previous day's sharp gains. Shares of the electronic equipment firm  were up 8.3%.
The energy sector .SPTTEN ended 1.1% higher as concerns about additional energy supply disruptions in the Middle East due to continued fighting in Yemen boosted the price of oil. US crude futures CLc1 settled up 2.9% at $102.78 a barrel.
Five of the 10 major sectors ended lower.
The real estate sector .GSPTTRE fell 0.8%, while industrials .GSPTTIN were down 0.8% as railroad shares lost ground.
There has been limited progress in trade talks with the United States to ease US tariffs on Canadian steel and autos, a Canadian government official with knowledge of the discussions said.

 (Reporting by Fergal Smith in Toronto and Anand Gopal and Tharuniyaa Lakshmi in Bengaluru; Editing by Vijay Kishore)
 ((fergal.smith@thomsonreuters.com; +1 647 480 7446))