Canada’s main resource-heavy stock index rose on Wednesday, as higher commodity prices boosted energy and materials stocks, while investors widely expect the U.S. Federal Reserve to skip raising interest rate.
The TSX remained buoyant 60.62 points to approach noon hour EDT Wednesday at 20,051.02.
The Canadian dollar prospered 0.19 cents to 75.28 cents U.S.
Energy stocks gained tracking higher crude oil prices, while materials advanced as metal prices went up ahead of the Fed rate decision.
Lundin Mining Corp jumped 57 cents, or 5.6%, to $10.72 to the top of TSX, after UBS upgraded its rating on the stock to “buy” from “neutral”.
Wednesday, new motor vehicle sales were reported for April, and vehicle registrations decreased in this country to 148,815 units from 150.956 units in March.
ON BAYSTREET
The TSX Venture Exchange descended 0.93 points to 615.83.
Eight of the 12 TSX subgroups were higher midday, with consumer discretionary issues up 1%, industrials ahead 0.8%, and information technology soaring 0.5%.
The four laggards were weighed most by energy, dipping 0.6%. utilities and health-care, each sliding 0.4%.
ON WALLSTREET
The Dow Jones Industrial Average fell Wednesday as investors looked ahead to the Federal Reserve’s policy decision and subsequent press conference slated for the afternoon.
The 30-stock index remained in the red 83.91 points to pause for lunch Wednesday at 34,128.21. UnitedHealth was the biggest drag on the Dow, losing 7%.
The S&P 500 pushed higher 17.26 points to 4,386.27.
The NASDAQ index gained 64.89 points to 13,637.39.
Aside from the Fed’s policy announcement, investors are preparing for Chair Jerome Powell’s remarks to the media, where he may give insight into the state of the economy and the central bank’s path forward.
Investors received more encouraging inflation data on Wednesday. May’s producer price index, an indicator of the path of inflation, fell 0.3%, a larger decrease than expected. Economists polled by Dow Jones anticipated a decline of 0.1%. On Tuesday, May’s reading of the consumer price index, which showed the lowest annual increase in more than two years, bolstered investor hopes that the Fed will not raise interest rates.
Prices for the 10-year Treasury gained ground, dropping yields to 3.78% from Tuesday’s 3.83%. Treasury prices and yields move in opposite directions.
Oil prices dropped 26 cents to $69.16 U.S. a barrel.
Gold prices regained $12.10 to $1,970.70 U.S. an ounce.