FX.co ★ TSX Rises to Fresh Record High

On Wednesday, the S&P/TSX Composite Index climbed by 0.8%, reaching a new record high of 31,491. This surge came as investors processed the decisions made by the Bank of Canada and the Federal Reserve, along with their accompanying guidance. The Bank of Canada maintained its policy rate steady at 2.25%, emphasizing that this stance remains appropriate considering a blend of robust third-quarter growth and trade-related volatility. This hawkish pause diminished immediate expectations for policy easing. Concurrently, the Federal Reserve executed a widely anticipated 25 basis point rate cut. Investors shifted their focus to the Fed’s guidance and Chair Jerome Powell’s comments, interpreting them as signals that encouraged market participants to bet on an approximately 68% likelihood of the Fed enacting two or more rate cuts in the following year. The technology sector spearheaded the index’s rise, with Shopify experiencing a notable 4.8% surge. Leading mining companies also performed well, with Barrick Mining, Wheaton Precious Metals, and Franco Nevada gaining 1.9%, 2.9%, and 2.1% respectively, driven by the increase in gold prices. The financial sector contributed positively as well, with TD Bank and BMO each advancing around 2%.