By Nikhil Sharma
(Reuters) -Canada's main stock index hit another record high on Monday in a broad-based rally led by energy and mining stocks, while September rate cut optimism in the United States also boosted investor sentiment.
At 9:59 a.m. ET (13:59 GMT), the Toronto Stock Exchange's S&P/TSX composite index was up 118.64 points, or 0.51%, at 23,404.72, and is poised to extend its record-setting streak from Friday.
At least ten major sectors on TSX logged gains, with the energy sector climbing 2.1% as oil prices rose nearly 3% on reports of a near total production stoppage in Libya. [O/R]
The materials sector rose 0.5% tracking gold and copper prices that gained due to a weaker dollar and on hopes of a U.S. rate cut next month. [GOL/] [MET/L]
Federal Reserve Chair Jerome Powell on Friday endorsed the commencement of policy easing cycle, while acknowledging that inflation was on a sustainable downward path to a 2% target.
"When you have five and a quarter Fed funds rate and inflation rate at around 2.5%, there's a lot of room for cutting," said Allan Small, senior investment advisor at Allan Small Financial Group with iA Private Wealth.
Market participants are betting on a higher chance of 25 basis points cut at the policy meeting next month.
The focus will be on the U.S. personal consumption and gross domestic product estimates expected later in the week, along with AI-darling Nvidia (NASDAQ:NVDA)'s quarterly results due on Wednesday.
Back home, the Canada Industrial Relations Board ordered to end work stoppages at the railways operators that posed a threat to Canada's export-driven economy.
In an important week for Canadian earnings, major lenders like Bank of Nova Scotia (TSX:BNS), Royal Bank of Canada (TSX:RY), and the National Bank of Canada (TSX:NA) are expected to report their quarterly results.
Among corporate news, Givex shares jumped 50% after Shift4 Payments agreed to acquire the Canadian technology firm in a deal valued at C$200 million.