Canada’s main stock index rose on Wednesday after the Bank of Canada kept interest rates unchanged, while signs of cooling inflation in the U.S. boosted investor sentiment on hopes of a dovish Federal Reserve.
The TSX came off its highs of the morning, but remained afloat 96.11 points to move into lunch hour Wednesday at 20,517.96.
The Canadian dollar crept up 0.04 cents to 74.32 cents U.S.
The index was led by a rise of $3.13, or 5.2%, in shares of Shopify, to $64.36, on JMP Securities’ rating upgrade.
Among other major movers, Brookfield Infrastructure fell $2.77, or 4.4%, to $59.56, after the company said it would buy intermodal container lessor Triton International for about $4.7 billion.
The Bank of Canada today held its target for the overnight rate at 4.5%, with the Bank Rate at 4.75% and the deposit rate at 4.5%. The Bank is also continuing its policy of quantitative tightening.
ON BAYSTREET
The TSX Venture Exchange wilted 2.76 points to 631.20.
All but three of the 12 TSX subgroups were higher noon hour, with information technology sprinting 1.3%, real-estate up 1%, industrials stronger 0.8%.
The three laggards were health-care, doffing 0.8%, consumer staples, off 0.5%, and consumer discretionary stocks down 0.2%.
ON WALLSTREET
Stocks rose slightly Wednesday as traders assessed the release of cooler-than-expected data.
The Dow Jones Industrials gained 94.49 points to stop for lunch at 33,779.28.
The S&P 500 picked up 7.76 points to 4,116.70.
The NASDAQ inched up 2.29 points to 12,034.17.
Later in the week, the health of the U.S. economy and consumer will be put to the test as first-quarter earnings season kicks into full gear. Banking behemoths JPMorgan Chase, Wells Fargo and Citigroup are on deck, as well as health-care giant UnitedHealth
The March consumer price index came in cooler than expected, showing a rise of 0.1% in March. Economists polled by Dow Jones were expecting CPI to rise by 0.2% month over month.
The report could impact the Federal Reserve’s rate decision come May. It may also cement the case for a stop to the central bank’s rate-hiking regime, even though CPI was still up 5% year over year.
Minutes from the Federal Reserve’s March policy meeting are also due out Wednesday, and slated to offer further clues into the mindset behind the central bank’s 25 basis point hike in the wake of Silicon Valley Bank’s collapse and the turmoil that rattled the broader banking sector.
Prices for the 10-year Treasury gained a bit, lowering yields to 3.42% from Tuesday’s 3.43%. Treasury prices and yields move in opposite directions.
Oil prices improved $1.52 to $83.05 U.S. a barrel.
Gold prices shone brighter $3.30 to $2,022.30 U.S. an ounce.