Canada’s main stock index flexed its muscles on Wednesday, feeding off the good vibes from the central bank’s dramatic interest rate drop.
The TSX jumped 153.37 points to close Wednesday at 25,657.70.
The Canadian dollar hiked 0.07 cents to 70.61 cents U.S.
The Bank of Canada cut its key interest rate by 50 basis points to 3.25%. The Bank Rate is now 3.75% and the deposit rate is 3.25%.
The top bank has reduced its key policy rate by 125 basis points since June amid worries about the country’s lukewarm economic growth, even as annual inflation came within its target range of 2%.
In corporate news, forest and wood products firm Canfor Corporation announced it has acquired 7% of outstanding shares of its Swedish peer VIDA AB effective today. Canfor shares edged down four cents to $16.45.
Bausch Health Companies dropped $1.12, or 9.5%, to $10.68 after a report said Blackstone may exit a group bidding for the eye care firm Bausch & Lomb, contributing to a more than 3% fall in the healthcare sector.
Gold stocks were kings, as NovaGold jumped 44 cents, or 8.8%, to $5.48, while Equinox Gold captured 61 cents, or 7.2%, to $9.08.
In materials, SSR Mining hiked 89 cents, or 8.3%, to $11.59, while First Majestic Silver shot higher 38 cents, or 4.2%, to $9.46.
Among techs, Shopify leaped $5.54, or 3.5%, to $166.34, while Bitfarms took on 11 cents, or 3.9%, to $2.96.
Health-care stocks puts the brakes on, though, as Tilray sagged three cents, or 1.7%, to $1.78.
Communications trod backward, with TELUS erased 78 cents, or 3.5%, to $21.57, while BCE retreated 68 cents, or 1.8%, to $36.84.
Utilities also had a rough time, with Brookfield Infrastructure Partners skidding $1.09, or 2.2%, to $47.69, while Algonquin Power and Utilities sank 14 cents, or 2.1%, to $6.45.
ON BAYSTREET
The TSX Venture Exchange eked up 3.93 points to 616.60.
Seven of the 12 TSX subgroups were up on the session, with gold shining 2.9% brighter, materials 1.8% stronger, and information technology better 1.6%.
The five laggards were weighed most by health-care, sinking 2.8%, while communications ditched 1.8%, and utilities lost 1.2%.
ON WALLSTREET
The NASDAQ Composite surged Wednesday after November’s inflation report met economists’ projections, clearing the way for the Federal Reserve to cut interest rates again at its December meeting next week.
The Dow Jones Industrial index closed an ‘up-and-down’ session off 99.27 points to finish Wednesday at 44,148.56.
The S&P 500 index regrouped 49.28 points to 6,084.19
The tech-heavy NASDAQ ballooned 347,65 points, or 1.8%, to 20,034.84, smashing the 20K barrier.
Alphabet gained for a second day on the heels of Google making a breakthrough in quantum computing with its new chip. Other tech giants like Meta and Amazon were also higher.
Nvidia, Tesla and other bull market leaders climbed following the relatively tame inflation data as well. The chipmaker ticked up more than 3%, and Tesla advanced more than 5%. Nvidia has risen about 182% and Tesla almost 70%, year to date.
November’s consumer price index, which tracks a basket of goods and services, was in line with expectations. The reading showed a 0.3% rise from October and 2.7% increase from a year ago. Excluding volatile food and energy prices, core CPI increased 0.3% on the month and 3.3% on an annual basis.
While this inflation data represented a quicker pace from the prior month, traders speculated it was still not high enough to keep the Fed from cutting rates at its next gathering. Fed funds futures are pricing in a 99.9% likelihood that the central bank lowers rates at that gathering
Prices for the 10-year Treasury sagged, raising yields to 4.27% from Tuesday’s 4.23%. Treasury prices and yields move in opposite directions.
Oil prices progressed $1.76 to $70.35 U.S. a barrel.
Prices for gold jumped $34.30 an ounce to $2,752.70 U.S.