Energy shares help lift TSX as Bank of Canada cuts rates
Source: Live Mint
TSX ends up 0.7% at 24,423.34
Technology sector adds 1.3%
Energy gains 1.7% as oil settles 2.2% higher
BoC cuts key rate by 25 basis points
(Updates at market close)
March 12 (Reuters) – Canada’s main stock index rebounded on Wednesday, including gains for energy and technology shares, as U.S. inflation cooled and the Bank of Canada cut interest rates to help the domestic economy cope with an escalating trade war.
The Toronto Stock Exchange’s S&P/TSX composite index ended up 175.14 points, or 0.7%, at 24,423.34, after posting on Tuesday its lowest closing level in four months.
The Bank of Canada lowered its key interest rate by 25 basis points to 2.75% and raised concerns about inflationary pressures and weaker growth stemming from trade uncertainty and U.S. President Donald Trump’s tariffs.
“The trade conflict is certainly weighing on sentiment and economic activity and so they’re trying to get in front of this, to make some adjustments to make our economy a little bit more nimble and powerful in the face of these tariffs that are facing us,” said Robert G. Gill, a portfolio manager at Fairbank Investment Management Limited.
Trump’s increased tariffs on all U.S. steel and aluminum imports took effect on Wednesday, ratcheting up a global trade war and drawing swift retaliation from Canada and Europe.
U.S. benchmark the S&P 500 also ended higher as U.S. consumer prices increased less than expected in February, helping stanch a sharp selloff among growth stocks.
The Toronto market’s technology sector rose 1.3%, led by gains for e-commerce firm Shopify and electronic equipment company Celestica.
The heavily weighted energy sector added 1.7% as oil prices rallied. U.S. crude oil futures settled 2.2% higher at $67.68 a barrel. Consumer discretionary was the only one of ten major sectors to end lower. It fell 1%, with construction supplies company Mattr Corp down 5.5%. (Reporting by Reporting by Fergal Smith in Toronto and Nikhil Sharma in Bengaluru; Editing by Vijay Kishore and Alistair Bell)
