FX.co ★ TSX Edges Higher After NA Rate Cuts

On Wednesday, the S&P/TSX Composite index saw a slight increase, closing at 29,322, as market participants evaluated the anticipated 25 basis point reductions by both the Bank of Canada and the US Federal Reserve. Investors also considered the future guidance from these financial institutions. Domestically, new data highlighted a softening labor market and a slowdown in economic growth, reinforcing expectations of further monetary easing. This prompted markets to anticipate a more defined trajectory toward lower interest rates. In contrast, the US Fed's 25 basis point cut, alongside projections indicating two more cuts within the year, was tempered by more optimistic forecasts regarding economic growth, a lower forecasted unemployment rate, and upward revisions to core inflation. These factors reduced expectations for a more aggressive easing cycle. Sector performances varied, with mining and banking stocks leading the gains—Barrick Mining increased by approximately 2.3%, and TD Bank rose by about 0.8%. Conversely, Constellation Software declined by 1.7%, while Canadian Pacific and Canadian National both fell by 0.9%.