Canada’s main stock index registered more gains on Thursday, driven by materials stocks tracking higher metals prices. Utilities led gainers on the TSX while energy and industrials led the drop. Investors have been coming to terms with the fact the U.S. Federal Reserve won’t cut rates around June as previously hoped.
Bank of America’s CEO comments to media, coupled with economists polled by Reuters, have shifted the consensus belief that the Fed will wait until September to cut its key interest rate. U.S. markets attempted to recover lost ground, despite being on track for a losing week. Yields in the bond market charged higher after more reports showed the U.S. economy remains stronger than expected.
The Canadian dollar traded for 72.63 cents compared with 72.46 cents U.S. on Wednesday.
U.S. crude futures traded $0.01 lower at $82.68 a barrel, and the Brent contract lost $0.24 to $87.05 a barrel.
The price of gold was up US$12.44 to US$2,380.41.
In world markets, the Nikkei was up 117.90 points to 38,079.70, the Hang Seng was up 134.03 points to 16,385.87, the FTSE was up 29.06 points to 7,877.05, and the DAX was up 80.79 points to 17,850.81.
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