Canada Stocks: Toronto stocks hit all-time high on energy boost

OceanaGold

23/09/2024 15:59

(Updated at 10:14 a.m. ET/ 1414 GMT)
    By Nikhil Sharma
       Sept 23 (Reuters) - Canada's main stock index hit a
record high on Monday led by gains in energy stocks, while
investors remained buoyed by U.S. Federal Reserve's interest
rate cut last week.
    At 10:14 a.m. ET (14:14 GMT), the Toronto Stock Exchange's
S&P/TSX composite index  .GSPTSE  was up 70.7 points, or 0.3%,
at 23,938.07 and was set to extend its record closing streak for
the third session.
    Canada's heavyweight energy sector advanced 1.6%, tracking
higher oil prices that benefited from the Fed's rate cut and a
dip in U.S. crude supply following Hurricane Francine.  O/R 
    Traders expect Fed to cut rates by another 75 basis points
by the end of this year and are keeping an eye on several data
prints that could provide clues on monetary policy.  0#FEDWATCH 
   
    "Several more interest rate cuts are built into the market's
expectations right now, and what would change that is the path
of either inflation and/or economic growth," Chris McHaney, head
of investment management and strategy at Global X Investments
Canada.
    A preliminary survey showed on Monday that U.S. business
activity was steady in September, but average prices charged for
goods and services rose at the fastest pace in six months,
potentially hinting at a pickup in inflation in the coming
months.
    Attention is now on the Fed's preferred inflation gauge, the
core personal consumption expenditures (PCE), expected on
Friday.
    Domestic investors also await Canada's gross domestic
product numbers for July, expected on Friday.
    The TSX is up 14.1% for the year due to optimism over the
Fed's policy easing and after the Bank of Canada slashed its
policy rates three times this year. The Canadian central bank is
unanimously expected to cut borrowing costs further at its
October meeting.  0#BOCWATCH 
    


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