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 72.97 points to 29,388.20.
The Canadian dollar dipped 0.13 cents to 72.65 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 two points to $18.92.
Consumer stocks rose as Aritzia eased one cent to $86.56, and Dollarama added $1.94. or 1%, to $189.28.
Conversely, technology shares were under pressure as heavyweight Celestica dropped $15.51, or 4.4%, to $334.30.
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 0.3 points to 876.57.
All but three of the 12 subgroups gained ground, led by health-care, up 1.5%, consumer discretionary stocks, up 1.1%, while real-estate was 0.7% more solid, and financials, better by 0.6%.
Information technology issues settled 1.3%, energy doffed 0.2%, and consumer staples edged back 0.01%.
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 313.43 points to 46,071.33.
The S&P 500 retreated 7.96 points to 6,598.80.
The tech-heavy NASDAQ index plunged 119.33 points to 22,214.63.
Nvidia shares dropped about 3% after The Financial Times reported, citing sources, that China has banned tech companies in the country from buying Nvidia’s chips. High-flying tech stocks Palantir, Google parent Alphabet, and Amazon also posted losses.
Big-box retailer Walmart gained about 2%, lifting the 30-stock Dow, on expectations that the Fed’s decision will usher in a series of lower interest rates that could give consumers some relief.
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 lost ground by noon, inching yields up to 4.04% from Tuesday’s 4.03%. Treasury prices and yields move in opposite directions.
Oil prices fell 17 cents to $64.35 U.S. a barrel.
Gold prices dipped $7.30 to $3,717.80 U.S. an ounce.
