S&P TSX Composite Index – A Surge in Toronto Stock
Market News – On Wednesday, the S&P/TSX Composite index continued its upward trajectory, marking a 0.5% increase and reaching the 18,970 mark. This positive trend is the third in a row since hitting a one-year low last Friday.
Investors were engrossed in the US Federal Reserve’s anticipated decision to hold interest rates steady, while also 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.
Banking Sector Leads the Way
The banking sector, a significant player in the market, spearheaded these gains. This was due to a combination of 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.
J.J Edwards is a finance expert with 15+ years in forex, hedge funds, trading systems, and market analysis.