After a week marked by fluctuations between record highs and significant losses, Canada’s primary stock index closed out the week with a mix of gains and losses that mirrored activity on Wall Street. The market saw a pullback as traders assessed the impact of a U.S. interest rate cut, which had driven a rally on the TSX earlier in the week.
Following a record-setting rally in the U.S. markets, investor confidence surged as the Federal Reserve initiated an easing cycle with a substantial 50-basis-point rate cut and hinted at further reductions. The central bank also signaled expectations for sustained economic growth, low unemployment, and controlled inflation. The resulting gains on Wall Street were reflective of the positive momentum in European and Asian markets post-Fed rate cut – the first in over four years.
The Canadian dollar was valued at 73.74 cents U.S., a slight decrease from 73.75 cents U.S. on the previous day. U.S. crude futures traded up $0.40 at $72.35 a barrel, while the Brent contract rose by $0.04 to $74.92 a barrel. The price of gold also rose to US$2,625.30, an increase of US$37.95.
In global markets, the Nikkei rose by 568.58 points to 37,723.91, the Hang Seng increased by 245.41 points to 18,258.57, the FTSE dropped by 98.73 points to 8,229.99, and the DAX decreased by 282.37 points to 18,720.01.
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