While investors await the U.S. Federal Reserve’s interest rate decision, Toronto stocks edged up on Wednesday as rising gold prices supported materials shares. The S&P/TSX composite index of the Toronto Stock Exchange was up 91.2 points, or 0.45%, at 20,310.09 as of 10:19 a.m. ET (14:19 GMT).
The price of materials, which primarily consists of enterprises that mine precious and base metals and produce fertiliser, increased by 1.2% in tandem with increasing gold and metal prices.
At its meeting on Wednesday, the Fed is anticipated to maintain interest rates in the range of 5.25%-5.50%.
Investors are also anticipating the publication of fresh predictions that will show whether and to what extent U.S. central bank policymakers are supportive of the idea of a “soft landing” for the economy.
The most likely outcome of this meeting, according to Sam Millette, fixed income analyst for Commonwealth Financial Network, is no imminent change in the current course of monetary policy, with the possibility of signals of a future rate hike.
Market players will closely monitor the Fed’s dot plot at this meeting rather than concentrating on the federal funds rate, the paper noted.
After August’s domestic annual inflation rate increased to 4.0% from 3.3% in July, raising concerns that the Bank of Canada (BoC) would increase interest rates further, Canada’s resource-heavy benchmark index experienced a more than 1% decline on Tuesday.
After brokerage Jefferies upgraded the stock, shares of Bausch Health Companies with U.S. and Canadian listings increased by more than 8%, reversing losses from the previous session.
Late on Tuesday, Ford struck a last-minute agreement to avert a walkout at its Canadian facilities, despite the United Auto Workers union across the border announcing it may extend its protest against the Detroit Three automakers to further sites.