Canada's main stock index hit another record high on Tuesday, aided by energy stocks, as investors assessed benign domestic annual inflation data amid market optimism around an outsized policy cut by the U.S. Federal Reserve this week.
The TSX Composite Index held onto gains of 25.24 points to make its way into Tuesday afternoon at 23,727.31, still another all-time record. The index hopes to extend its win streak to four sessions. The TSX is up 13.3% for the year.
The Canadian dollar dipped 0.05 cents to 73.55 cents U.S.
In company news, First Quantum Minerals opened a voluntary retirement scheme to workers at the Cobre Panama mine as the company waits for a government decision on restarting the operation. Shares in First Quantum remained positive 36 cents, or 2.2%, to $17.13.
In the economic docket, housing starts for August tailed off to 217,400 from 279,800 in July, while the consumer price index rose 2.0% on a year-over-year basis in August, down from a 2.5% increase in July. On a seasonally adjusted monthly basis, the CPI rose 0.1% in August.
ON BAYSTREET
The TSX Venture Exchange forged ahead 0.96 points to 583.01.
Seven of the 12 TSX subgroups were lower midday, with gold fading 0.6%, consumer staples dipping 0.5%, and real-estate 0.4% worse off.
Energy led the five gainers, up 1.1%, while health-care stocks were haler 0.9%, and consumer discretionary stocks surged 0.3%.
ON WALLSTREET
The S&P 500 hit a record high Tuesday as the market awaited the Federal Reserve’s key interest rate cut decision.
The Dow Jones Industrials index gained 81.92 points to 41,704, hitting a new all-time record.
The much broader index regained 19.12 points to 5,652.21, after touching an all-time high.
The S&P 500's move to an all-time high comes during a historically tough period for the market. September has been the worst month for the benchmark over the last 10 years, averaging a 1.3% monthly loss, according to FactSet data.
The NASDAQ recovered 118.51 points to 17,710.63.
Microsoft rose 1.3% after the tech giant hiked its quarterly dividend by 10.7% to 83 cents per share. The company also approved a $60 billion buyback program. Intel shares jumped more than 5% after the company said it plans to make its foundry business a subsidiary. The Biden administration also awarded the company up to $3 billion in funding through the Chips Act.
The latest retail sales data indicated solid consumer health. Retail sales rose 0.1% in August versus economists’ estimates for a 0.2% decline, according to Dow Jones. Excluding autos, the number also came in at a 0.1% increase, which slightly missed the 0.2% consensus forecast.
While a 50-basis-point cut isn’t out of the question, the chief global strategist thinks that the Fed should take a more cautious approach to cutting and ease rates by 25 basis points. She is forecasting additional 25-basis-point cuts in November and December.
Prices for the 10-year Treasury sagged, hoisting yields to 3.64% from Monday’s 3.62%. Treasury prices and yields move in opposite directions.
Oil prices gained $1.31 to $71.40 U.S. a barrel.
Gold prices swooned $16.50 to $2,592.40.
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