What’s going on here?
The Toronto Stock Exchange’s S&P/TSX composite index hit a new high, climbing 115 points to 24,554.08, driven by hopes for a rate cut from the Bank of Canada.
What does this mean?
Optimism is buzzing in Toronto’s market, boosted by the chance of a big shift in monetary policy. Healthcare is leading with over 1% growth, followed closely by real estate and utilities. Metal markets also provided a boost, with gold and copper prices nudging upwards. This optimism stems from a weaker-than-expected inflation rate of 1.6%, making a case for a 50 basis point rate cut by the Bank of Canada next week. However, the IT sector mirrored US tech declines, following Nasdaq’s lead. Factory sales slid by 1.3% in August, yet housing showed modest promise with increased starts despite missing expectations. Meanwhile, in the US, Morgan Stanley uplifted the financial sector with strong third-quarter profits.
Why should I care?
For…
