TSX at New Peak on BOC Optimism

Canada's main stock index hit a record high on Wednesday in a broad-based rally, as investors remained optimistic about the possible outsized interest rate cut by the Bank of Canada next week.

The TSX Composite Index hiked 104.25 points to observe noon hour EDT at 24,543.33

The Canadian dollar nicked ahead 0.04 cents to 72.60 cents U.S.

The BoC has offered three quarter-point cuts this year and traders see a 79.3% chance for a 50-basis-point cut at the policy meeting next week.

In corporate news, U.S. fund Artisan Partners urged the board of Japanese retailer Seven & i Holdings to allow due diligence and negotiate a purchase price on Canada's Alimentation Couche-Tard's $47 billion takeover bid. Couche-Tard shares climbed 81 cents, or 1.1%, midday to $73.81.

Elsewhere, Saudi Arabia's Manara Minerals is in advanced talks to buy a minority stake in First Quantum Minerals' Zambian copper and nickel assets. Shares of First Quantum rose 53 cents, or 3% midday to $18.00.

On the economic slate, the Canadian Real Estate Association says home sales recorded over Canadian MLS® Systems climbed 1.9% on a month-over-month basis in September 2024, reaching their highest level since July 2023 in September. Statistics Canada reports manufacturing sales declined 1.3% in August, largely on lower sales of primary metals as well as petroleum and coal products. The declines were partially offset by higher production of aerospace products and parts.

Canada Mortgage and Housing Corporation said the seasonally-adjusted annualized rate of housing starts rose to 223,808 units from a revised 213,012 units in August.

ON BAYSTREET

The TSX Venture Exchange recovered 7.33 points, or 1.2%, to 607.75.

All but two of the 12 TSX subgroups showed gains Wednesday morning, with health-care soaring 1%, while utilities and real-estate each climbed 0.9%.

The two laggards were information technology, down 0.4%, and energy, off 0.3%.

ON WALLSTREET

The Dow Jones Industrial Average traded higher on Wednesday as it tried to recover its footing following a selloff in the previous session.

The 30-stock index surged 202.38 points to 42,942.80.

The S&P 500 index regained 5.54 points to 5,820.80.

The NASDAQ Composite dipped 24.41 points to 18,291.18.

Shares of Morgan Stanley rose 7% after topping Wall Street estimates for both its third-quarter earnings and revenue. United Airlines also reported better-than-expected results.

Earnings reports this week have been mixed, with solid reports from major banks somewhat offset by weak outlooks from firms like UnitedHealth Group and Dutch chipmaker ASML

Prices for the 10-year Treasury gained, lowering yields to 4.01% from Tuesday’s 4.03%. Treasury prices and yields move in opposite directions.

Oil prices were lower 54 cents to $70.04 U.S. a barrel.

Gold prices added $11.30 to $2,690.20 U.S. an ounce