Canada Stocks-TSX rebounds from four-week low as mining shares rally
SPY•Sector moves were mixed
The materials group .GSPTTMT, which includes metal mining shares, rose 2.2%. Gold XAU= bounced from a near one-month low as the U.S. dollar and Treasury yields retreated from recent highs.
Consumer discretionary .GSPTTCD added 1.4%, led by a 2.9% rise in the shares of auto parts supplier Magna International MG.TO. Heavily weighted financials .SPTTFS ended 1.5% higher.
Five of the 10 major sectors ended lower, including energy .SPTTEN. It lost 1.1% even as U.S. crude oil futures settled 0.9% higher at $91.01 a barrel, driven by renewed military strikes between the U.S. and Iran that have restricted world oil supply.
Technology .GSPTTTK was also a drag, falling 1.5%, with shares of electronic equipment company Celestica CLS.TO down 5.6%.
Bank of Canada holds rates steady
The Bank of Canada left its benchmark interest rate unchanged at 2.25%, as widely expected, but said the risks to inflation had grown while new U.S. tariffs made growth prospects more uncertain.
"Policymakers will be patient as they assess how those risks evolve," Benjamin Reitzes, Canadian rates and macro strategist at BMO Capital Markets, said in a note.
Investors expect the central bank to remain on hold at the next policy decision in October but have fully priced in a quarter-point rate hike by the end of the year, swap market data showed.
TSX rebounds as materials and financials lift the index
Canada's main stock index rose on Wednesday, led by gains for financial and metal mining shares, as the Bank of Canada remained patient on hiking interest rates.
The S&P/TSX Composite Index .GSPTSE ended up 265.88 points, or 0.7%, at 36,091.61, ending a three-day losing streak that had resulted in the index posting on Tuesday its lowest closing level in four weeks.
