TSX rises at open after boost from miners ahead of Fed decision

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Highlights

  • The S&P/TSX composite index was up 140.83 points, or 0.72%, at 19,689.34.
  • The healthcare sector jumped 2.5%.
  • The energy sector climbed 0.2%.

Canada's main stock index rose on Wednesday, aided by mining and healthcare shares, ahead of a highly anticipated interest rate decision from the US Federal Reserve due later in the day.

At 9:41 am ET (1341 GMT), the Toronto Stock Exchange's S&P/TSX composite index was up 140.83 points, or 0.72%, at 19,689.34, a day after hitting its lowest level in more than one year.

The materials sector, which includes precious and base metals miners and fertilizer companies, added 1.8% as gold prices rose 1% bolstered by a pullback in the US dollar and US Treasury yields.

One-year price chart (June 15) of S&P/TSX. Analysis by © 2022 Kalkine Media®

"We've got a stronger open today as people are getting more comfortable that the Fed might be doing something proactive and doing a bigger hike than had been expected, which is probably good news at the end of the day," said Gregory Taylor, portfolio manager at Purpose Investments.

"If we get any sense that we've hit peak levels of hawkishness from the central banks, that could be a set up for a bounce."

Also read: 3 TSX natural gas stocks to buy right now & hold forever: TOU, ENB, CVE

Investors have raised their bets of a 75 basis points (bps) rate hike, rather than 50 bps, following hotter-than-expected inflation data last week that fueled a selloff across global markets.

The healthcare sector jumped 2.5%, as pot producers Canopy Growth, Cronos Group, Tilray Brands gained between 2.4% and 3.5%.

Also read: CVE, CPG, SU: 3 TSX energy stocks that are soaring this year

The energy sector climbed 0.2% as oil prices were stable as the market juggled fears of tight supply with concerns over fuel demand and global economic growth.



 


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