Canada’s main stock index rose on Tuesday to a record high, with the materials and technology sectors leading broad-based gains as optimism rose that the U.S. Federal Reserve would cut interest rates in September.
The index was playing catch-up with Wall Street after the Canadian market holiday on Monday. U.S. stocks rallied sharply on Monday, bouncing back from Friday’s drubbing, but retreated again on Tuesday.
The S&P/TSX composite index ended up 549.65 points, or 2%, at 27,570.08, after three straight days of declines. It was the biggest gain since April 11 and eclipsed the record closing high that was posted last Tuesday.
Investors see a roughly 95% chance the Fed will ease next month after the release of downbeat U.S. jobs data on Friday.
“People see (the U.S. unemployment numbers) as being the rationale for a reduction in interest rates at the Fed, and that’s essentially positive for stock markets,” said Thomas…
