Baystreet.ca - Traders on both sides of the border with the U.S. hearkened to the vibes from the Federal Reserve Wednesday about interest rate prospects.
The TSX Composite Index gained 84.29 points, to finish trading Wednesday at 23,121.73.
The Canadian dollar revived 0.10 cents to 73.54 cents U.S.
In corporate news, Brookfield Asset Management (TSX:BAM) asked banks to backstop nearly $10.6 billion of debt for the potential takeover of Spanish pharmaceutical firm Grifols, according to a Bloomberg report.
Brookfield shares gained 23 cents to $54.61.
Elsewhere, Bitfarms' shares poked up three cents to $3.23 after the Canadian bitcoin miner agreed to acquire Stronghold Digital Mining in a $125-million stock-for-stock merger. Bitfarms took hold of three cents to $3.23. by day’s end.
Real-estate was the leader among gaining subgroups, as Northwest Healthcare (TSX:NWH_u) Property REIT units perked 30 cents, or 6.3%, to $5.08, while units of Interrent REIT copped 43 cents, or 5.9%, to end the day at $4.66.
Among tech companies, Converge Technology (TSX:CTS) rose 26 cents, or 5.9%, to $4.66, while Dye & Durham climbed 45 cents, or 3.2%, to $14.38.
Among materials, Calibre Mining (TSX:CXB) gained 17 cents, or 7.7%, to $2.39, while those for Capstone Mining (TSX:CS) jumped 44 cents, or 4.7%, to $9.75.
Utilities didn’t have such a good time of it, though, as Boralex (TSX:BLX) shares tumbled 62 cents, or 1.9%, to $32.67, while Northland Power (TSX:NPI) shed 38 cents, or 1.7%, to $21.92.
Energy plays took some blows as well, as Africa Oil dropped two cents, or 1%, to $2.05, while Secure Energy (TSX:SES) shares fell seven cents to $11.84.
On the economic calendar, Statistics Canada said July’s Industrial Product Price Index was unchanged month over month and rose 2.9% on a yearly basis. The Raw Materials Price Index rose 0.7% month over month in July and increased 4.1% year over year.
ON BAYSTREET
The TSX Venture Exchange sprang up 6.49 points, or 1.1%, to 577.83.
All but two of the 12 TSX subgroups were in plus territory by the end of the day, with real-estate ahead 1.2%, information technology gaining 1%, and materials higher 0.7%.
The two laggards were utilities, slumping 0.2%, while energy slipped 0.03%.
ON WALLSTREET
The S&P 500 advanced Wednesday after a summary of the Federal Reserve’s policy meeting last month reinforced hope for lower rates in the near future.
The Dow Jones Industrial index recovered 54.99 points to end Wednesday’s session at 40,889.96.
The much-broader index climbed 23.71 points to 5,620.83.
The NASDAQ hiked 102.05 points to 17,918.99.
Fed officials said a decrease to the borrowing cost during the September policy meeting was increasingly likely, according to minutes from the July gathering released Wednesday afternoon. The majority of participants indicated that loosening monetary policy would be appropriate if data continued to come in as expected.
That bolsters the expectations of market participants, with traders are pricing in a 100% chance of a rate cut next month. Where the Street diverges is on how big the potential reduction will be.
Investors on Wednesday also kept an eye on the latest earnings reports to trickle in. Target (NYSE:TGT) jumped more than 12% after reporting earnings for the fiscal second quarter that exceeded Wall Street’s expectations. But fellow retailer Macy’s dropped almost 13% on a lowered full-year sales forecast.
Traders are pricing in a 100% chance of a rate cut next month. To be sure, the Street is split over how big the reduction will be.
Prices for the 10-year Treasury gained ground, lowering yields to 3.80% from Tuesday’s 3.81%. Treasury prices and yields move in opposite directions.
Oil prices erased $1.25 at $71.92 U.S. a barrel.
Gold prices charged $1.90 to $2,552.50.