FX.co ★ TSX Struggles for Direction

The S&P/TSX Composite Index hovered just below breakeven, settling around the 29,280 mark on Monday. This was primarily due to a decline in the performance of commodity producers as investors awaited key policy announcements from North America's leading central banks. Despite oil and gold prices remaining elevated, sectors like energy and mining surrendered some of their gains from the previous week. Conversely, the technology sector, sensitive to interest rate changes, emerged as a notable supporter of the index. The market anticipates the Bank of Canada will announce a 25 basis point interest rate cut on Wednesday, amid indications of a weakening labor market and slowing economic activity, with further cuts likely in the following quarter. Similarly, it is almost certain that the Federal Reserve will implement a 25 basis point reduction at its next meeting, with a slight possibility of a more significant cut, while further rate easing is anticipated throughout the remainder of the year.