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TSX Rallies to One-Month High; Fed Approves BMO-Bank of the West Takeover

Published 2023-01-18, 12:31 p/m
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By Ketki Saxena 

Investing.com – The Canadian index rose to its highest level in over a month today, tracking Wall Street higher after lower than expected US retail sales, and easing producer prices fuelled hopes for a pivot from the Federal Reserve in February. 

The commodity heavy Canadian index was also supported by gains in crude, with continued optimism about China’s reopening a day after its economy slowed to an underwhelming 3% in 2022, but still beat expectations for a more significant contraction. 

The Biggest Stories on Bay Street 

The US Federal Reserve has approved Bank of Montreal’s takeover of San Francisco-based Bank of the West. The move will make Bank of Montreal (TSX:BMO) U.S. subsidiary BMO Financial Corp. the 15 largest US lender, with consolidated assets of US$286.8 billion. The $16.3 billion deal, is the largest ever by a Canadian bank, and expected to close on Feb 7.

Canadian Stocks Moving Markets Today 

Top Gainers: 

  • Dundee Precious Metals 
  • Algoma Steel 
  • MTY Foods

Top Losers: 

  • Wesdome Gold 
  • Pason Systems 
  • Torex Gold 

In Canadian Economics 

Statistics Canada reported that he Industrial Product Price Index (IPPI), which measures price changes for outputs of the Canadian manufacturing industry, declined 1.1% month over month in December, and was up 7.6% year over year. The Raw Materials Price Index (RMPI), which reflects the prices paid by Canadian manufacturers for key raw materials , fell 3.1% on a monthly basis in December and increased 7.5% year over year.

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