Canada’s main stock index scaled an all-time high on Wednesday, bolstered by ongoing optimism surrounding a September U.S. Federal Reserve interest rate cut.
At 9:50 a.m. ET (1350 GMT), the Toronto Stock Exchange’s S&P/TSX composite index was up 0.39% at 28,028.83 points.
The move builds on the benchmark index’s record close on Tuesday after the July CPI report from the U.S. suggested a limited impact of tariffs on prices and reinforced bets for the Federal Reserve rate cut in September.
Traders have fully priced in a September rate cut and view at least two reductions by the end of 2025, according to the CME Group’s FedWatch tool.
“People are focusing more on things like the U.S. interest rate cuts, Trump and Putin meeting on Friday, the U.S. either resolving or delaying some of their tariff threats,” said Colin Cieszynski, chief market strategist at SIA Wealth Management.
“We’re seeing equity markets continue to do well, people remain confident the economy has held up, and inflation has not taken off as much as people thought.”
TSX’s consumer discretionary led the sectoral gains with a 1.7% jump, boosted by Gildan Activewear surging 12%, after the apparel manufacturer agreed to buy U.S. undergarments maker Hanesbrands for $2.2 billion.
Materials climbed 0.7%, thanks to elevated gold and copper prices on the back of U.S. policy easing optimism.
A solid earnings season, reduced trade tensions and expectations of policy easing have pulled global equities up from the April lows triggered by Trump’s “Liberation Day” tariffs.
TSX is up over 13% this year, outperforming Wall Street’s S&P 500’s 10% rise.
Markets are also bracing for a high-stakes meeting between U.S. President Donald Trump and Russian President Vladimir Putin on Friday to discuss a potential end to the war in Ukraine.
At 13:30 ET, the Bank of Canada will release a summary of the monetary policy deliberations that went behind its July interest rate decision, when it kept rates unchanged.
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