Canada's main resource-heavy stock index rose at the market open on Wednesday, boosted by energy and material stocks, while a slowing U.S. inflation print cemented the bets on a pause in interest rate hikes by the Federal Reserve.
The TSX grabbed 79.04 points to open Wednesday at 20,069.44.
The Canadian dollar hiked 0.19 cents to 75.28 cents U.S.
Wednesday, new motor vehicle sales were reported for April, and vehicle registrations decreased in this country to 148,815 units from 150.956 units in Marc.
ON BAYSTREET
The TSX Venture Exchange eked upward 0.31 points to 617.07.
Eight of the 12 TSX subgroups were higher in the first hour of trade, with information technology soaring 0.8%, while energy and consumer discretionary stocks acquired 0.6% each.
The four laggards were weighed most by communications, down 0.5%, utilities, sliding 0.2%, and health-care, off 0.1%.
ON WALLSTREET
The Dow Jones Industrial Average fell Wednesday as investors looked ahead to the Federal Reserve’s policy decision and subsequent press conference slated for the afternoon.
The 30-stock index flopped 146.88 points to commence trade on Wednesday at 34,065.24. UnitedHealth was the biggest drag on the Dow, losing 8%.
The S&P 500 pushed higher 10.31 points to 4,379.32.
The NASDAQ index gained 40.59 points to 13,613.91.
Aside from the Fed’s policy announcement, investors are preparing for Chair Jerome Powell’s remarks to the media, where he may give insight into the state of the economy and the central bank’s path forward.
Investors received more encouraging inflation data on Wednesday. May’s producer price index, an indicator of the path of inflation, fell 0.3%, a larger decrease than expected. Economists polled by Dow Jones anticipated a decline of 0.1%. On Tuesday, May’s reading of the consumer price index, which showed the lowest annual increase in more than two years, bolstered investor hopes that the Fed will not raise interest rates.
Prices for the 10-year Treasury gained ground, dropping yields to 3.79% from Tuesday’s 3.83%. Treasury prices and yields move in opposite directions.
Oil prices climbed 78 cents to $70.20 U.S. a barrel.
Gold prices regained $12.80 to $1,971.40 U.S. an ounce.
Related Stories
