Canada's commodity-heavy main stock index edged higher on Tuesday, led by energy and materials shares, as markets stayed optimistic about a potential Bank of Canada interest rate cut this month.
The TSX Composite Index greeted noon EDT Tuesday ahead 52.49 points to 29.080.22.
The Canadian dollar erased 0.19 cents to 72.29 cents U.S.
Expectations that the BoC and the U.S. Federal Reserve will resume their easing cycles have supported sentiment since Friday, following disappointing jobs data from both the United States and Canada.
Investors assign a 92.5% probability that the Bank of Canada will lower its benchmark rate from 2.75% on Sept. 17.
Among other commodities, oil and copper prices edged higher.
Markets were also assessing multiple mergers and acquisitions deals.
London-listed miner Anglo American and Teck Resources said on Tuesday they plan to merge, in what would be the biggest mining-sector M&A deal in more than a decade.
Teck shares zoomed $7.09, or 14.6%, to $55.59.
Separately, the bidding war for Canadian oil sands producer MEG Energy heated up as Strathcona Resources raised its offer to outbid larger rival Cenovus Energy.
Shares in MEG gathered seven cents to $29.09, while those for Strathcona took on 40 cents, or 1%, to $38.71, and Cenovus advanced 63 cents, or 2.9%, to $22.75.
ON BAYSTREET
The TSX Venture Exchange subtracted 4.01 to 859.92
Eight of the 12 subgroups were lower by midday, as telecoms shed 1.1%, consumer discretionary stocks lost 0.8%, and consumer staples dipped 0.6%.
The four gainers were led by energy, rumbling 2.2%, financials, ahead 0.5%, and utilities, nicking up 0.2%.
ON WALLSTREET
The S&P 500 was relatively unchanged on Tuesday, while the NASDAQ Composite retreated from its recent highs as investors tried to grasp the state of the U.S. economy.
The Dow Jones Industrials flexed some muscle and gained 82.33 Tuesday noon to 45,597.28.
The much-broader index reversed 1.32 points to 6,493.83.
The tech-heavy index lost 20.05 points to 21,778.57.
The Labor Department updated its jobs figures for the 12 months through March, lowering the total payroll gains during that period by a whopping 911,000.
While the data had minimal impact on stocks Tuesday because its regarding figures from six months ago, the report may reinforce calls for the Federal Reserve to be more aggressive with rate cuts this year.
Wall Street is coming off a winning session. The NASDAQ rose 0.5%, as key chipmakers such as Broadcom and Nvidia helped carry the tech-heavy index to all-time highs.
During Tuesday’s session, Apple shares were marginally lower ahead of an annual event in which the company is expected to unveil a new iPhone.
Additionally, Fox shares dipped 5% after Lachlan Murdoch gained control of the media empire as the Murdoch family settled a dispute over the family trust. Dell Technologies shares also slid 2% after CFO Yvonne McGill resigned, effective Tuesday.
But investors are now awaiting two key inflation reports that could determine what Federal Reserve policymakers will do at their meeting next week. Last week, a surprisingly weak jobs report added to hopes the path for interest rates is lower.
Prices for 10-year Treasury declined Tuesday, raising yields to 4.08% from Monday’s 4.04%. Treasury prices and yields move in opposite directions.
Oil prices jumped 74 cents to $63.00 U.S. a barrel.
Gold prices grabbed $4.10 to $3,681.50 U.S. an ounce.
