Canada’s main stock index edged higher on Wednesday in the run-up to the U.S. Federal Reserve’s monetary policy decision for more clues on the central bank’s rate-hike trajectory, while a drop in energy stocks kept gains in check.
At 10:06 a.m. ET, the Toronto Stock Exchange’s S&P/TSX composite index was up 43.64 points, or 0.21%, at 20,451.2.
The Fed is expected to increase lending rates by 25 basis points at the end of its policy meeting at 2:00 p.m. ET, with markets increasingly hoping for signs of a pause on further hikes.
“It will not be about the rate hike that we expect, but more so about the message signaling a pause or not, and in what way this will be framed,” said Angelo Kourkafas, investment strategist at Edward Jones Investments.
“A pause can help stabilize the market volatility and alleviate some of the upward pressure on the short-term yield curve.”
The TSX has been choppy in the last few days amid a slew of corporate earnings as well as monetary policy decisions from top central banks.
Utilities added 1.4%, led by a 2.4% gain in Brookfield Infrastructure Corp after the company beat quarterly fund-from-operation estimates.
Shares of Aritzia Inc plunged 14.4% after at least three brokerages downgraded the design house stock following its quarterly results.
Adding to the pressure, energy stocks lost 1.3% as oil prices continued their downward trend, with investors fretting about the health of the world’s largest economy.
Barrick Gold Corp edged up 0.6% as higher metal prices helped the gold miner beat expectations for first-quarter profit.
Loblaw Companies Ltd lost 3.6% after the retailer’s first-quarter profit fell compared to a year earlier.
Comments
Comments are closed.