TSX Barely Clears Breakeven Ahead of Bank Rate Decision Wednesday
Canada's main stock index edged up on Monday, aided by a rise in energy stocks, while the markets awaiting Bank of Canada's (BoC) interest rate decision later in the week.
The TSX advanced 14.95 points in Monday’s first hour at 20,039.58.
The Canadian dollar eked down 0.02 cents to 74.44 cents U.S.
BoC is expected to keep its key interest rate on hold at 4.50% for the rest of this year, according to a Reuters poll of economists, who said the risk of one more rate hike was high. The decision is expected on Wednesday.
The Canadian dollar dipped 0.09 cents to 74.37 cents U.S.
Among company news, Wesdome Gold Mines Ltd said Anthea Bath would take over as the miner's CEO from July 1. Wesdome shares lost seven cents to $7.69.
ON BAYSTREET
The TSX Venture Exchange picked up 1.34 points to 610.42.
The 12 TSX subgroups were evenly divided between gainers and losers, as energy rumbled 0.7% higher, while communications and industrials each picked up 0.2%.
The half-dozen laggards were weighed most by gold, sliding 0.7%, while health-care and materials each lost 0.6%.
ON WALLSTREET
The S&P 500 rose on Monday to trade near a nine-month high, boosted by gains from technology giants, including Apple.
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The Dow Jones Industrials declined 93.69 points to 33,669.07.
The S&P 500 edged higher 0.78 points to 4,283.15.
The tech-heavy NASDAQ index added 22.17 points to 13,039.58.
Apple stock rose more than 1% to hit an all-time high, with shares last trading at $183.42. The iPhone maker kicks off its Worldwide Developers Conference, where many Wall Street analysts widely expect the company to reveal its virtual reality headset.
Elsewhere, oil prices climbed more than 2% after Saudi Arabia announced it would further cut output by one million barrels per day starting in July. The news followed a meeting of OPEC and its allies, during which the group decided to stick to existing 2023 production targets.
Stocks are coming off a big rally to end the week on the heels of a strong May jobs report. The larger-than-expected number signaled to some investors that a recession may no longer be in the cards for the economy.
The passage of the debt ceiling bill and avoidance of a potentially catastrophic default also boosted investor sentiment, with President Joe Biden signed bill into law late Friday.
Prices for the 10-year Treasury improved, lowering yields to 3.67% from Friday’s 3.70%. Treasury prices and yields move in opposite directions.
Oil prices jumped $1.13 to $72.87 U.S. a barrel.
Gold prices gained $3.60 to $1,973.20 U.S. an ounce.