FX.co ★ TSX Set for Fresh Record Highs

The S&P/TSX Composite Index surged by approximately 1.3% on Wednesday, reaching an unprecedented level of over 27,900 points. This upswing followed a period of selloff last week, driven by renewed optimism for a potential interest rate cut by the Federal Reserve in September, alongside robust commodity prices and encouraging earnings reports. Notably, Shopify's shares skyrocketed over 20% after the company announced a 31% increase in Q2 revenue and a 17% rise in operating income, surpassing analysts' expectations. Furthermore, Shopify projected its Q3 revenue to grow in the mid- to high-20% range. Meanwhile, Suncor's shares advanced more than 2% after outperforming profit forecasts and capitalizing on the rise in oil prices, benefitting other firms in the sector such as Canadian Natural, Imperial Oil, and Cenovus, which saw gains ranging from 1.4% to 2%. On the economic front, Canada's private sector showed continued contraction for the eighth month running. However, the composite Purchasing Managers' Index (PMI) improved to 48.7 in July from June's reading of 44.0, as the declines in manufacturing (46.1 versus 45.6) and services (49.3 versus 44.3) sectors moderated.