AUS
NZ
UK
CA
USA
IND
Highlights
- The S&P/TSX composite index rose by 182.26 points, or 0.8%, closing at 22,872.65, nearing its record high set last week.
- Real estate and utilities sectors led the rally, gaining nearly 2% and 1.3%, respectively, ahead of an anticipated interest rate cut by the Bank of Canada.
- Expectations for a 25 basis point interest rate cut on Wednesday strengthened amid recent data showing a cooling inflation trend.
- Financials, energy, and technology sectors also contributed to the gains, rising by 0.9%, 0.8%, and nearly 1%, respectively.
- The materials sector was the sole major sector to register no gains, contrasting with broad-based positive momentum across other sectors.
Canada's primary stock index, the S&P/TSX Composite (TXCX), saw gains on Monday, buoyed by the real estate and utilities sectors amidst anticipation of an upcoming interest rate cut by the Bank of Canada. The index closed up 182.26 points, or 0.8%, at 22,872.65, nearing the record high of 22,995.39 reached last Tuesday.
Michael Sprung, president at Sprung Investment Management, noted, "Expectations for a modest interest rate cut this week are high, which is bolstering investor confidence in the economy's resilience."
The Bank of Canada is widely anticipated to lower its benchmark rate by 25 basis points to 4.50% on Wednesday, marking its second consecutive cut as recent data indicates a cooling inflation trend. Sprung added, "Despite signs of easing inflation, we're still navigating a turbulent period. I remain cautious about inflationary pressures going forward, especially amid the upcoming U.S. election."
On Wall Street, investors reevaluated the presidential race following U.S. President Joe Biden's announcement that he would not seek reelection, contributing to market sentiment.
The real estate and utilities sectors, known for high dividend yields benefiting from lower interest rates, posted gains of nearly 2% and 1.3%, respectively. Meanwhile, financials rose by 0.9%, energy by 0.8%, and technology by almost 1%. The materials sector was the sole major sector to show no gains during the trading session.
