Market News – On Wednesday, the S&P/TSX Composite index continued its upward trajectory, marking a 0.5% increase and reaching 18,970. This positive trend is the third since hitting a one-year low last Friday.
S&P TSX Composite Index – A Surge in Toronto Stock
Investors were engrossed in the US Federal Reserve’s anticipated decision to hold interest rates steady while leaving room for potential policy adjustments. Concurrently, the most recent PMI report indicated a six-month decline in Canadian manufacturing activity in October, underscoring the effects of the Bank of Canada’s increased borrowing costs.
The Banking Sector Leads the Way
The banking sector, a significant player in the market, spearheaded these gains. This was due to muted domestic data and less-than-anticipated long-term borrowing from the US Treasury, which bolstered government bond prices. This development sparked optimism for reduced delinquency rates that had previously impacted Canadian lenders in Q3.