Canada’s main stock index hit a record high on Monday, lifted by healthcare and energy stocks, as investors anticipated a bigger U.S. interest rate cut by the U.S. Federal Reserve later this week.
The TSX Composite Index was better 59.79 points to begin Monday and the week at 23,628.44.
The Canadian dollar dipped 0.07 cents to 73.57 cents U.S.
In corporate news, Air Canada on Sunday reached a tentative last-minute deal with its pilots’ union over a new four-year collective agreement, ending a standoff over pay and benefits and averting a near-term strike or lockout. Shares in “The Maple Leaf Airline” had lift of 65 cents, or 4.1%, to $16.50.
On the economic docket, motor vehicle sales rang in at 169,000 for July, compared to 166,000 in the prior-year month.
Manufacturing sales rose 1.4% in July, mainly on higher sales of petroleum and coal, and chemical products. The gains were partially offset by lower sales of wood products. Also, the Canadian Real Estate Association reported home sales recorded over Canadian MLS Systems edged up by 1.3% on a month-over-month basis in August, reaching their highest level since January and their second highest in over a year.
ON BAYSTREET
The TSX Venture Exchange slid 1.2 points, or 1.7%, to 579.23.
Eight of the 12 TSX subgroups were in plus territory in the first hour, led by health-care, haler by 0.9%, industrials, climbing 0.5%, and financials, richer by 0.4%.
The four laggards were weighed most by real-estate, down 0.5%, communications, off 0.4%, and gold, sinking 0.2%.
ON WALLSTREET
The S&P 500 was little changed Monday as investors await the Federal Reserve’s highly anticipated policy meeting, during which central bankers are expected to cut rates for the first time since 2020. Meanwhile, the Dow Jones Industrial Average rose to a new all-time high.
The 30-stock index jumped 239.16 points to open the week’s first session at 41,632.94
The much broader index lopped off 1.16 points to 5,624.86.
The NASDAQ slipped 111.05 points to 17,572.93.
Apple shares declined more than 2% after analysts at firms, including Bank of America and JPMorgan, noted that shipping times could point to lighter demand for iPhone 16 Pro models than the prior year.
The S&P 500 is less than 1% away from its July record and could notch a new all-time high this week. After a rough start to a historically weak September, the three major U.S. indexes ended last week’s trading session in the green, with the S&P 500 and NASDAQ just closing their best week of 2024.
The Fed is set to meet on Tuesday and Wednesday and are widely anticipated to make its first interest rate cut since it began hiking rates in March 2022. A cut this week would be a pivotal move, as many investors hope the decision could lower borrowing costs for companies and improve overall earnings growth — boosting economic growth.
Prices for the 10-year Treasury sagged, raising yields to 3.65% from Friday’s 3.64%. Treasury prices and yields move in opposite directions.
Oil prices gained $1.94 to $70.59 U.S. a barrel.
Gold prices lost $1.80 to $2,608.90.
