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Thursday, December 8, 2022

Toronto blue chips hit over 5-month high on tech, materials boost - Business Recorder

Last updated Thursday, November 24, 2022 15:05 ET , Source: TopWireNews

Canada’s main stock index hit over five-month highs on Thursday, supported by technology, materials and financial stocks as well as optimism that the U.S. Federal Reserve would flatten its monetary tightening trajectory.
At 10:10 a.m. ET, the Toronto Stock Exchange’s S&P/TSX composite index was up 69.84 points, or 0.34%, at 20,352.1.
The commodity-linked materials sector rose 0.4%. Copper prices firmed on demand prospects after three Chinese banks agreed to provide support to the country’s embattled property sector.
Even as U.S. markets are shut for the Thanksgiving holiday, investors took comfort from minutes of the Fed’s Nov policy meeting that noted it was more important to focus on how high rates will need to rise to tame inflation than the size of coming rate increases.
Bank of Canada Governor Tiff Macklem also noted that domestic inflation remained strong, and higher interest rates were the medicine to soothe the economy.
Analysts are pricing in a 88% chance of a 25 basis point hike at the BoC’s next meeting on Dec. 7. Such a move would take the policy rate to 4%, a level last seen in January 2008.
“The important part of these rate hikes is that once they stop, they are likely to keep rates in the higher range for longer than what most people think,” said Colin Cieszynski, chief market strategist at SIA Wealth Management.
Traders are now bracing for earnings from top Canadian banks next week.
“I think results will be mixed, similar to what we saw with American...



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