What’s going on here?
The Toronto
Stock
Exchange’s S&P/TSX composite index saw a modest rise of 0.13%, gaining 28.15 points to reach 22,099.86 as of this morning.
What does this mean?
Canada’s economic growth in the first quarter missed expectations, propelling the chances of a 25 basis point
interest
rate cut by the Bank of Canada to nearly 81%, up from a previous 66%. The weaker-than-expected GDP growth likely clears the path for this monetary easing. Meanwhile, the US Personal Consumption Expenditures Price Index rose 0.3% in April, meeting forecasts and lifting major Wall Street indexes. Traders increased their bets on a September rate cut by the US Federal Reserve to over 52% from 49%. More than half of the sectors on the TSX climbed, led by a 0.7% rise in the communication services index and a 0.5% advance in the energy sector, thanks to higher crude prices and anticipation of the upcoming OPEC+ meeting.
Why should I care?
For…
