Canada's main stock index rose on Wednesday as the domestic annual inflation rate dropped sharply in November, underscoring market expectations that imminent interest rate hikes are off the table.
The S&P/TSX Composite Index came off its highs of the morning, but remained positive 75.91 points to greet noon at 14,492.80
The Canadian dollar eked up 0.12 cents to 74.42 U.S.
Gold miners including Eldorado Gold gathered one cent, or 1.2%, to 87 cents, and New Gold Inc rose two cents, or 1.9%, to $1.10, boosting the materials index.
The largest percentage gainers on the TSX also included Parex Resources, leaping 49 cents, or 3.5%, to $14.59
Home Capital Group fell $1.78. or 10.8%, to $14.70, the most on TSX, after Berkshire Hathaway decided to substantially exit from investment in Canada's biggest alternative lender.
The second biggest decliner was Gran Tierra Energy, down two cents to $3.07.
On the economic slate, Statistics Canada reported that the Consumer Price Index rose 1.7% on a year-over-year basis in November, following a 2.4% increase in October. Monthly CPI declined 0.2% in November.
ON BAYSTREET
The TSX Venture Exchange gained 2.76 points to 545.91
All but three of the 12 TSX subgroups were positive midday, especially energy, up 1.4%, information technology, ahead 1.3%, and consumer discretionary stocks, better by 1%.
The three laggards were gold, down 1.1%, health-care, sliding 0.8%, and utilities, off 0.6%.
ON WALLSTREET
U.S. stocks posted sharp gains Wednesday as investors bet the Federal Reserve later today will signal a slower pace of rate hikes are ahead in the new year.
The Dow Jones Industrials popped 279.31 points, or 1.2%, to 23,954.95, as gains in UnitedHealth and Caterpillar led the blue-chip index higher.
The S&P 500 gained 27.71 points, or 1.1%, to 2,573.82, as energy and materials each rose at least 1%.
The NASDAQ acquired 66.51 points, or 1%, to 6,850.42, as Alphabet and Netflix each rose at least 2%.
The uptick in U.S. equities came despite a downturn in FedEx stock, which slid more than 10% after CEO Richard Smith blamed “bad political choices” for weakness in its overseas business.
FedEx lowered its 2019 earnings guidance and reported weakness in its international business, putting the stock on pace for its worst day on Wall Street in more than a decade. The stock is also on track for its worst month since 1978.
The central bank will release its decision on interest rates at 2:00 p.m. ET, and many market participants said that they anticipate the Fed to signal that it will slow the pace of further increases to the federal funds rate in 2019.
The Fed is viewed as likely to take the Fed funds rate range to 2.25 to 2.50 percent and to remove language in its post-meeting statement that says it will continue with “gradual” rate increases.
Prices for the benchmark for the 10-year U.S. Treasury grew slightly, lowering yields to 2.81% from Tuesday’s 2.83%. Treasury prices and yields move in opposite directions
Oil prices picked up $1.38 to $47.62 U.S. a barrel.
Gold prices added $5.30 to $1,258.90 U.S. an ounce.
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