Canada’s main stock index moved higher on Wednesday, supported by a slew of strong earning reports, while investors closely awaited Federal Reserve’s monetary policy meeting for more clues on interest rate trajectory.
At 10:28 a.m. ET, the Toronto Stock Exchange’s S&P/TSX composite index was up 161.82 points, or 0.86%, at 19,035.29, on track for a three-day win streak.
Thomson Reuters shares added 4.2% after the parent company of Reuters News reported higher-than-expected third-quarter profit and announced a new $1 billion share repurchase program.
Centerra Gold jumped 8.5% to the top of the TSX after the gold miner beat third-quarter revenue estimates and posted quarterly profit compared to a loss in the previous year.
The utilities index advanced 2.8%, leading sectoral gains as Brookfield Infrastructure Partners rose 9.0% after reporting higher revenue in the third-quarter.
Meanwhile, data showed Canada’s manufacturing PMI rose in October for the first time in three months, but the sector remained in contraction as output and new orders declined while cost pressures rose.
Investors now await the Fed’s monetary policy decision, with all eyes on Chair Jerome Powell’s speech at 1430 ET for clues to the way forward on the interest rates.
“The hiking cycle is over and the question now becomes when will we see rate cuts,” said Allan Small, senior investment advisor at Allan Small Financial Group with iA Private Wealth.
“But I don’t think anything (rate cuts) will happen, at least until spring or summer of next year,” Small added.
The energy sector climbed 1.0% following an over 2% rise in crude prices as the conflict in the Middle East remained in focus.
Shares of Canada Goose Holdings tumbled 10.3% after the luxury parka maker cut its annual sales forecast on weak demand in high-growth market China.
First Quantum Minerals extended declines for the third consecutive day, down 10.3% as uncertainty over the future of its key Panama copper mine led investors to cut their exposure.
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