Canada Stocks: Toronto stocks hit record high after US rate cut

Meren Energy

19/09/2024 16:29

(Updated at 10:46 a.m. ET/ 1446 GMT)
    By Nikhil Sharma
       Sept 19 (Reuters) - Canada's main stock index climbed to
a record high on Thursday, boosted by technology stocks, as
investors cheered an outsized interest-rate cut by the U.S.
Federal Reserve.
    The Toronto Stock Exchange's S&P/TSX composite index
 .GSPTSE  was up 210.38 points, or 0.89%, at 23,802.98.
    Investors world over reacted positively to the U.S. central
bank's 50-basis-point rate cut after keeping policy rates at an
over two-decade high for over a year.
    Policymakers also projected another reduction of
half-a-percentage point by the end of this year. Analysts
believe the policy easing could help the U.S. economy achieve a
soft landing scenario.
    The rate cut is "indicative of the Fed lending support to
the economy in the hopes of engineering a soft landing and
investors are buying that narrative and are bidding up stocks,"
said Brian Madden, chief investment officer at First Avenue
Investment Counsel.
    Investors also assessed U.S. weekly jobless claims data,
which dropped to a four-month low last week, pointing to solid
job growth in September and continued economic expansion in the
third quarter.
    Ivanhoe Mines Ltd  IVN.TO​ , Lundin Mining Corp​  LUN.TO 
and Hudbay Minerals Inc​  HBM.TO  were up between 4-6% and were
among the top gainers on the composite index. The TSX is up
13.3% this year.
    At least eight sectors on the index logged gains, with four
sectors rising over 1%.
    Canada's information technology  .SPTTTK  sector was the
biggest gainer among sectoral indexes with a 2.4% jump,
supported by 5.2% surge in Bitfarms  BITF.TO .
    The heavyweight energy sector  .SPTTEN  rose 1.5% as it
tracked crude prices that benefited from the Fed rate cut. Crude
oil and gold are among Canada's top exports. 
    In oil markets, the West Texas Intermediate crude futures
 CLc1  rose 1.1%, while Brent crude  LCOc1  rose 1.1%  O/R .
Gold prices  XAU=  rose 0.9%.
 

 (Reporting by Nikhil Sharma in Bengaluru; Editing by Leroy Leo)
 ((Nikhil.Sharma@thomsonreuters.com))