Canada’s main stock index edged higher on Monday, as technology companies tracked gains in their Wall Street peers, while investors awaited the Bank of Canada’s interest rate decision later in the week.
At 10:09 a.m. ET (1509 GMT), the Toronto Stock Exchange’s S&P/TSX composite index was up 25.58 points, or 0.12%, at 20,528.79.
Technology stocks were the top gainers, up 1.6%, propped up by a 6.2% jump in Shopify after Deutsche Bank raised its rating on stock to “buy” from “hold”.
Spotlight was on the Bank of Canada (BoC) ahead of its decision on interest rates on Wednesday, with investors widely leaning towards a 25-basis-point hike.
“The latest employment data still shows strong employment and that inflation, even though falling, is still well above 6%, giving ammunition to the Bank of Canada to raise (rates) one more time,” said Allan Small, senior investment advisor at Allan Small Financial Group.
The Canadian central bank was one of the first central banks globally to start hiking its overnight lending rate last year in a bid to curtail runaway inflation.
Leading up to the decision, the BoC said on Sunday it will offer minutes from its policy-setting meeting this week for the first time in its history, a move some analysts say will help restore credibility lost last year amid soaring inflation and encourage an out-of-the-box thinking.
TSX extends losses as recession worries weigh
Last week, data showed Canada’s annual inflation rate easing more than expected in December as gas prices came down.
Communication stocks were a major drag on the index, losing 0.4% as BCE Inc shed 0.9% after a TD Securities downgrade.
Among individual stocks, Ritchie Bros Auctioneers gained 2.6% after the company said it will increase the cash payout for its deal to buy U.S.-based IAA Inc.
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