The rate cuts were in line with investor expectations
Canada’s standard stock index closed slightly higher as the Bank of Canada recently issued rate cuts for the first time since March.
The S&P/TSX composite index closed at 29,321.66, showing an increase of 6.43 points, according to BNN Bloomberg. The sectors which led the rise were Clean Technology, Telecoms, and Healthcare, with the top performers being Energy Fuels Inc., Endeavour Silver Corp., and Headwater Exploration Inc, according to Investing.com.
On the other hand, the worst performers were First Majestic Silver Corp., goeasy Ltd, and Lundin Mining Corporation. The Toronto Stock Exchange saw falling stocks outnumbering the ones that were advancing by 462 to 425 and 86 ending up unchanged.
Meanwhile, the Dow Jones industrial average rose 260.42 points, closing at 46,018.32. The S&P 500 index and Nasdaq composite both saw a decrease with 6.41 points at 6,600.35 and 72.63 pints at 22,261.33, respectively.
The performance of Canada’s benchmark stock index followed the Bank of Canada’s move to cut its key policy rate, which is now 2.5%. The central bank’s decision served as the first time it issued rate cuts since March of this year, according to MSN.
Graham Priest, an investment adviser at Blueshore Financial, noted that the central bank’s decision did not meet any pullback within the market since it was “in line with investors’ expectations.”
Sadiq Adatia, chief investment officer at BMO Global Asset Management, stated that the Bank of Canada’s move will give support to people when it comes to high debt levels and uncertainty brought by tariffs.
Priest also said that he expected the loonie to perform well in relation to the US dollar.
“Energy prices will likely firm up, which will be good for the Canadian dollar, and the materials sector should be positive going forward, which would also be good for the dollar,” he said.
Canadian dollar traded for 72.67 cents US, which was an increase from the previous 72.74 cents US.
