Canada’s main stock index hit a record high on Monday due to gains in mining and energy shares, while investors awaited the Bank of Canada’s interest rate decision due later in the week.
The TSX jumped another 50.77 points above last week’s all-time high to 24,873.31
The Canadian dollar let go of 0.13 cents to 72.33 cents U.S.
The Bank of Canada’s monetary policy decision is due on Wednesday, with expectations of a 50-basis-point rate cut, which would be the first significant reduction in 15 years outside of the pandemic era.
Traders are widely anticipating an oversized rate cut by the BoC, whose odds jumped after last week’s cooler-than-expected inflation data.
In corporate news, Apollo Silver announced to further increase the size of its private placement to 67.5 million shares at $0.20 per share. Apollo shares began Monday failed to budge from Friday’s close of 32 cents.
ON BAYSTREET
The TSX Venture Exchange took on 3.62 points to 625.29
The 12 TSX subgroups were evenly split, with gold better by 1.9%, materials sprinting 1.2%, and energy improving 0.4%.
The half-dozen laggards were weighed most by real-estate, down 0.6%, while health-care slumped 0.3%, and communications were off 0.2%.
ON WALLSTREET
U.S. stocks fell slightly on Monday after a strong week for the major averages, as investors awaited the release of major corporate earnings reports.
The Dow Jones Industrial tumbled 177.1 points to start off the week 43,098.81.
The S&P 500 index advanced turned downward 10.34 points to 5,854.33.
The tech-heavy NASDAQ eked higher 7.47 points to 18,497.01.
Momentum behind the major U.S. indexes’ recent gains may depend on whether companies can beat expectations this earnings season, which is set to ramp up this week. Roughly one-fifth of S&P 500 companies — including major names such as Tesla, Coca-Cola and GE Aerospace — are set to report through Friday.
Thus far, the results have been mixed. Of the 14% of S&P 500 companies that have already posted third-quarter results, 79% have beaten
expectations. However, the magnitude of those beats have been more lackluster.
Investors are largely optimistic equities still have further room to run, but they are mindful that stretched valuations, particularly ahead of the U.S. presidential election and amid rising geopolitical risks, could also mean further choppiness.
Monday’s moves come after both the S&P 500 and 30-stock Dow registered all-time highs on Friday, cementing a sixth straight weekly advance for both benchmarks.
Prices for the 10-year Treasury popped, lowering yields to 4.15% from Friday’s 4.08%. Treasury prices and yields move in opposite directions.
Oil prices gained 97 cents to $70.49 U.S. a barrel.
Prices for gold leaped $23.30 an ounce to $2.753.20 U.S.