Canadian Stocks Soar: Canada’s primary stock index soared on Thursday, propelled by robust gains in materials and energy stocks, fueled by an optimistic market mood following the U.S. Federal Reserve’s hints at potential rate cuts next year.
As of 9:49 a.m. ET (1449 GMT), the Toronto Stock Exchange’s S&P/TSX composite index (.GSPTSE) marked an increase of 199.35 points, or 0.97%, reaching 20,828.8, its highest point since Feb. 2. Concurrently, Wall Street witnessed a positive opening session, with the energy sector (.SPTTEN) enjoying a 1.7% surge, driven by elevated crude oil prices. The materials sector (.GSPTTMT), housing Canada’s key mining firms, surged by 2.3%, buoyed by a rally in base and precious metal prices.
Following Wednesday’s decision to keep interest rates unchanged, Federal Reserve Chief Jerome Powell suggested a potential shift towards rate cuts in the coming year, citing a quicker-than-expected decline in inflation. Raffi Boyadjian, lead investment analyst at forex broker XM, remarked, “While Powell did not completely rule out more tightening… he couldn’t be clearer in his press conference by saying that a rate hike ‘is not the base case anymore,’ music to the markets’ ears.”
Also Read: Canadian Stocks Soar to 8-Week High on Oil Rebound and Rate Hike Optimism
Seventeen of 19 Fed policymakers foresee lower rates by the end of 2024, with none predicting an increase. Real estate stocks sensitive to rate changes <.GSPTTRE> experienced a 2.0% uptick. On the data front for Thursday, Canadian home sales declined by 0.9% in November from October, while a separate report revealed an unexpected rise in U.S. retail sales for the same month.
Among individual stocks, Pembina Pipeline (PPL.TO) witnessed a 2.2% dip after announcing its acquisition of Enbridge’s (ENB.TO) interests in the Alliance Pipeline, Aux Sable, and NRGreen joint ventures for C$3.1 billion ($2.30 billion). Cenovus Energy (CVE.TO) saw a 2.0% gain, projecting increased production from its U.S. refineries in 2024. This positive momentum reflects the prevailing optimism in the Canadian stock market.
Our Reader’s Queries
Can Americans buy stocks on the Toronto Stock Exchange?
Absolutely! Americans have the option to purchase on the TSX. A number of companies listed on the TSX are also listed on U.S. exchanges. However, if you’re interested in buying securities on the Canadian exchange from the U.S., it’s important to find a brokerage that allows you to do so directly. Fortunately, there are many brokerages that offer this service.
Is TSX the only Canadian stock exchange?
In 1999, the Toronto Stock Exchange underwent a significant realignment plan, resulting in its establishment as the exclusive exchange for senior equity trading in Canada.
What is the name of Canada’s biggest stock exchange?
The TSX, Canada’s biggest stock exchange and one of the largest in North America, was established in 1861 with just 18 stock listings. Over the years, it has emerged as a pioneer in securities-trading technology, constantly innovating to stay ahead of the curve.
What are the two major stock exchanges in Canada?
The primary market for senior equity securities in Canada is provided by the TMX Group Limited and the Toronto Stock Exchange (TSX). You can find more information about them at www.tmx.com. Another recognized exchange in Canada is Cboe Canada, which was previously known as Aequitas NEO Exchange Inc.