FX.co ★ TSX Sets Record High for the 2nd Straight Session

The S&P/TSX Composite Index advanced by 1% to reach a historic peak of 28,333 on Friday. This upswing followed statements from Federal Reserve Chair Jerome Powell, suggesting the potential for the central bank to reduce interest rates as soon as September. Powell highlighted that current risks to the labor market have taken on greater significance since the last meeting, likely justifying a 25 basis points reduction next month. This likelihood spurred global demand for both bonds and risk assets. Notably, the technology sector was at the forefront of this upward movement, with Shopify rising by 3.4%, Constellation Software increasing by 2.5%, and Celestica advancing by 3.6%. The energy sector also showed robust performance, led by a significant 7.1% increase in Cenovus shares following its agreement to acquire MEG Energy in a transaction valued at C$7.9 billion. This acquisition re-evaluates synergies within the oil sands sector and highlights a renewed momentum in mergers and acquisitions across the industry. Additionally, mining companies lent further strength to the market, buoyed by elevated commodity prices. Over the course of the week, the Toronto stock exchange saw a 1.5% rise.