Canada's main stock index opened higher on Wednesday, boosted by materials and energy stocks as investors cheered a slowdown in U.S. inflation while looking forward to the Bank of Canada's decision on monetary policy tightening.
The TSX gained 73.51 points Wednesday to 19,952.07.
The Canadian dollar hiked 0.36 cents to 75.93 cents U.S.
Laurentian Bank of Canada, the country's ninth largest bank, said it was conducting a review of strategic options. Laurentian shares popped $10.46, or 31.2%, to $43.99
TD Securities downgraded Aritzia to "hold" from "buy". Shares in Aritzia tumbled $6.21, or 18.5%, to $27.42.
The Bank of Canada today increased its target for the overnight rate a quarter-percentage point to 5%, with the Bank Rate at 5.25% and the deposit rate at 5%. The Bank is also continuing its policy of quantitative tightening.
ON BAYSTREET
The TSX Venture Exchange regained 6.59 points first thing Wednesday to 624.65.
Seven of 12 TSX subgroups gained ground soon after the opening bell, with gold surging 2%, materials mightier by 1.6%, and real-estate up 1.2%.
The five laggards were weighed most by consumer discretionary stocks, sliding 0.5%. consumer staples, down 0.4%, industrials, sagging 0.3%.
ON WALLSTREET
U.S. stocks jumped Wednesday as traders cheered new data that showed inflation rose less than expected last month.
The Dow Jones Industrials jumped 273.49 points to open the mid-week session at 34,534.91.
The S&P 500 hiked 46.4 points, or 1.1%, to 4,485.42. The index reached a new high for 2023 and its highest level since April 2022.
The NASDAQ index climbed 188.54 points, or 1.4%, to 13,949.24.
Bank stocks jumped on Wednesday. Citigroup saw shares rally 3.6%, and Goldman Sachs hiked 3.1%. Regional banks also saw gains, with Comerica adding 6%, and Zions Bancorporation surging 5.2%.
The consumer price index rose 3% on a year-over-year in June. Economists polled by Dow Jones expected a 3.1% increase. Month over month, the index rose 0.2% last month, also less than forecast. On top of that, core CPI — which strips out volatile food and energy prices — also rose less than expected.
Prices for the 10-year Treasury were up a bit, lowering yields to 3.89% from Tuesday’s 3.98%. Treasury prices and yields move in opposite directions.
Oil prices gathered $1.05 to $75.88 U.S. a barrel.
Gold prices soared $25.00 to $1,962.10 U.S. an ounce.
Related Stories
