Equities in Canada’s largest market rose on Wednesday as heavyweight energy and mining stocks tracked stronger commodities, with investors awaiting minutes from the U.S. Federal Reserve's latest meeting for clues on its policy stance.
After hitting a record high at the open the TSX Composite index remained afloat 27.24 points to move into noon hour at 20,327.37.
The Canadian dollar added 0.33 cents to 79.93 cents U.S.
West Fraser Timber proved the index’s biggest gainer, picking up $4.18, or 4.8%, to $91.01, after the wood product company said it plans to buy back up to $1 billion worth of its shares.
Hudbay Minerals managed to keep its gains, rising 44 cents, or 5.5%, to $8.40.
Alternative-energy producer Westport Fuel Systems trailed Tuesday’s close by 30 cents, or 4.8%, to $5.99. The second biggest decliner was Blackberry, down 65 cents, or 4.3%, to $14.41.
Macroeconomically speaking, Western University reported its IVEY School of Business’ Purchasing Managers Index progressed to 71.9 in June, up from 64.7 in May, and much better than the 58.2 reading for June 2020.
ON BAYSTREET
The TSX Venture Exchange dumped 13.7 points, or 1.4%, to 939.82.
The 12 TSX subgroups were evenly split by midday, with industrials churning 1.4% higher, consumer staples better by 0.7%, and materials, climbing 0.5%.
The half-dozen laggards were weighed most by health-care, fading 2.6%, energy, failing 1.9%, and real-estate, off 0.3%.
ON WALLSTREET
The S&P 500 rose on Wednesday, helped by mega-cap technology stocks, after the index ended a seven-day winning streak in the previous session.
The Dow Jones Industrials remained positive 77.54 points to 34,644.73,
The S&P 500 regained 12.68 points to 4,356.22
The NASDAQ gained 20.24 points to 14,683.88, yet another intraday high for the index.
With rates falling and Wall Street fretting about a peak in economic growth, investors have rediscovered their old Big Tech favorites. Apple and Amazon are both up more than 10% over the past month, far outpacing the S&P 500's 2.8% return.
Bank shares including Goldman Sachs and Bank of America continued their retreat on Wednesday as long-term bond yields fell further, hurting the industry’s profitability prospects.
Investors will be listening to hear more clues on the direction of the Federal Reserve’s monetary policy when it releases its latest meeting minutes Wednesday afternoon.
The Fed’s minutes are expected to be dovish with the central bank looking for progress in the labour market and not worried that recent inflation will become a persistent trend.
Prices for 10-Year Treasurys gained ground, lowering yields to 1.31% from Tuesday’s 1.36%. Treasury prices and yields move in opposite directions.
Oil prices dropped $1.85 to $71.52 U.S. a barrel.
Gold prices gained $10.00 to $1,804.20 U.S. an ounce.
