Equities in Canada’s largest centre opened higher on Thursday, as the U.S. Federal Reserve signaled a likely interest rate cut to counter growing risks to global and domestic growth.
The S&P/TSX Composite Index climbed 84.11 points to begin Thursday at 16,595.50
The Canadian dollar grew 0.51 cents to 75.85 cents U.S.
RBC raised the price target on Altagas Canada to $32.00 from $23.00. Altagas grew 48 cents, or 2.1%, to $23.18.
Citigroup cut the price target on Cenovus Energy to $13.00 from $15.00. Cenovus rocketed 20 cents, or 1.7%, to $11.82.
J.P. Morgan cut the rating on First Quantum Minerals to underweight from neutral. First Quantum gained 40 cents, or 3.6%, to $11.61.
On the economic front, Statistics Canada reported 438,000 Canadians drawing employment insurance in April, up only 1,400 from the month before.
ON BAYSTREET
The TSX Venture Exchange recovered 5.6 points to kick off the session at 590.21
Eight of the 12 Toronto subgroups began the day in the green, with gold shining 2.7% brighter, materials stronger by 2%, and energy gushing 1.7%
The four laggards were saddled most by consumer staples, down 0.4%, communications, hesitating 0.3%, and real-estate, off 0.1%.
ON WALLSTREET
Stocks rose sharply on Thursday after the Federal Reserve hinted at possible interest rate cuts as soon as next month.
The Dow Jones Industrial Average clicked higher 235.89 points to 26,739.89, to within 1% of its record high, led by Caterpillar and Exxon Mobil.
The S&P 500 leaped 22.93 points to 2,949.30, hitting a record high as the tech and energy sectors outperformed
The NASDAQ Composite soared 71.16 points to 8,058.48
Netflix and Amazon were among the best performers, rising more than 1% each. Facebook, Apple and Alphabet also traded higher.
The Fed said Wednesday it stands ready to battle growing global and domestic economic risks as they took stock of intensifying trade tensions and growing concerns about inflation.
Most Fed policymakers slashed their rate outlook for the rest of the calendar year by approximately half a percentage point in the previous session, while Chairman Jerome Powell said others agree the case for lower rates is building.
Market participants viewed the overall tone from the U.S. central bank as more dovish than expected. Traders are now pricing in a 100% chance of a rate cut next month
Prices for the benchmark 10-year U.S. Treasury gained sharply, causing yields to fade to just below 2% from Wednesday’s 2.03%. Treasury prices and yields move in opposite directions.
Oil prices perked $2.19 to $55.95 U.S. a barrel.
Gold prices shone brighter $36.40 to $1,385.20 U.S. an ounce.
