Canada's benchmark stock index rose on Wednesday after the Bank of Canada lowered its base rate to a three-year low, as widely anticipated, while investors awaited U.S. Federal Reserve's policy decision due later in the day.
The TSX Composite Index regained 99.32 to 29,414.55.
The Canadian dollar dipped 0.12 cents to 72.66 cents U.S.
The Bank of Canada reduced its benchmark interest rate by 25 basis points on Wednesday, a move observers had almost universally expected amid various signs of economic weakness.
Air Canada said its flight attendants had requested a cancellation of mediation after members voted against a wage agreement earlier this month.
Shares in “The Maple Leaf Airline” edged up six points to $18.96.
Consumer stocks rose as Aritzia climbed 68 cents to $87.25, and Dollarama added $1.42 to $188.76.
Conversely, technology shares were under pressure as heavyweight Celestica dropped $11.18, or 3.2%, to $338.73.
Meanwhile, Finance Minister Francois-Philippe Champagne said in a social media post the country's upcoming federal budget would be delayed to November 4 from a previously announced October delivery.
Prime Minister Mark Carney had said the 2025/26 budget deficit would be larger than that of last year, partly due to the impact from U.S. tariffs.
Elsewhere on the economic calendar, Statistics Canada reported foreign investors acquired $26.7 billion of Canadian securities in July, led by purchases of federal government debt instruments and equity securities.
Meanwhile, Canadian investors added $17.4 billion of foreign securities to their portfolio, including a record investment in foreign bonds.
ON BAYSTREET
The TSX Venture Exchange eked up 1.78 points to 878.05.
All but one of the 12 subgroups gained ground, led by consumer discretionary stocks, up 0.8%, while real-estate was 0.7% more solid, and health-care stocks took on 0.6%.
Only information technology issues missed the celebration, dropping 0.9%.
ON WALLSTREET
Stocks were mixed Wednesday as traders prepared for a much-anticipated monetary policy decision and an even more important policy outlook from the Federal Reserve.
The Dow Jones Industrials roared ahead 221.11 points to 45,979.01.
The S&P 500 retreated 6.81 points to 6,599.95.
The tech-heavy NASDAQ index dropped 77.48 points to 22,256.48.
Nvidia shares dipped more than 1% after The Financial Times reported, citing sources, that China has banned tech companies in the country from buying Nvidia’s chips.
Traders almost universally expect the Federal Reserve will lower interest rates on Wednesday, a move that could boost the U.S. economy amid signs the labor market is slowing even as inflation stays stubbornly above the central bank’s 2% target.
Policymakers will also give more insight into their outlook for rates over the next year or so in the closely-watched “dot plot” grid that accompanies their quarterly Summary of Economic Projections.
Investors will also watch for any policy dissents from Fed policymakers after two such disagreements at the last meeting in July.
Traders have priced in a 96% chance that the Fed will cut rates by 25 basis points, or a quarter percentage point, and just 4% odds that the market will get a half-point reduction Wednesday
Prices for 10-year Treasury were static at 4.03%.
Oil prices fell 0.04 cents to $64.48 U.S. a barrel.
Gold prices withered $8.60 to $3,716.50 U.S. an ounce.
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