Bank of Canada downshift helps lift TSX to three-week high
Reuters
Published Oct 26, 2022 07:25AM ET
Updated Oct 26, 2022 05:16PM ET
By Fergal Smith
TORONTO (Reuters) - Canada's main stock index rallied on Wednesday to its highest closing level in more than three weeks, as a smaller-than-expected interest rate hike by the Bank of Canada fueled hopes the central bank is nearing the end of its tightening cycle.
The Toronto Stock Exchange's S&P/TSX composite index ended up 182.75 points, or nearly 1%, at 19,279.76, its highest closing level since Oct. 4.
"This bear market rally was about to run out of steam, but the Bank of Canada had other plans," Edward Moya, senior market analyst at OANDA in New York, said in a note.
The BoC raised its benchmark rate by half a percentage point, coming up short on calls for another 75 basis points move, and said it was getting closer to the end of its historic tightening campaign.
"We think they will likely hike another 25 bps (basis points) in December to end the hiking cycle," said Tiffany Wilding, North American economist at PIMCO.
The Toronto market's energy group rose 1.8% as U.S. crude oil futures settled 3% higher at $87.91 a barrel.
The materials group, which includes precious and base metals miners and fertilizer companies, added 1.8%, while industrials ended 1.3% higher.
Shares of Rogers (NYSE:ROG) Communications Inc jumped 5.8%, while Shaw Communications (NYSE:SJR) Inc shares were up 7.2% as investors bet that Canada is likely to approve Rogers Communications' bid for Shaw.
Get The News You Want
Written By: Reuters
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.