Tuesday, September 30th13.2°C
23366
22916

TSX up amid bullish housing news, traders look to Fed for rate hike hints

TORONTO - The Toronto stock market closed higher Monday as traders hoped for hints this week about when the U.S. Federal Reserve may move on hiking interest rates.

The S&P/TSX composite index closed up 34.23 points at 15,338.47. The Canadian dollar was up 0.02 of a cent at 91.86 cents US.

A strong showing in the National Association of Home Builders/Wells Fargo builder sentiment index raised hopes for a rebound in the U.S. housing sector and also helped push New York's Dow industrials up 175.83 points to 16,838.74. The Nasdaq gained 43.38 points to 4,508.31 and the S&P 500 index rose 16.67 points to 1,971.73.

The Fed has kept short-term interest rates near zero since the financial crisis of 2008-2009.

Traders will initially look to the Fed minutes from its latest meeting on rates on Wednesday.

They'll also look to Friday when Fed chair Janet Yellen delivers the keynote speech at the central bank's annual meeting in Jackson Hole, Wyo., which has been the scene of other major announcements.

"And in particular, they remember back two years ago signalling the next round of quantitative easing (so) I can understand why people are so focused on it," said David Wolf, portfolio manager in the Global Asset Allocation group at Fidelity Investments, adding he doesn't think markets will end up any the wiser about rates.

"The (Fed) keeps on drilling it into us it is data dependent, not calendar dependent, and the data have been evolving generally in a positive direction that suggests that tightening is on the visible horizon. Anything more specific is just sort of market chatter that should be tuned out."

One reason higher rates are a concern is that investors could be tempted to put more of their money in investments with a higher guaranteed rate of return.

Inflation plays a big part in when rates will start to head higher and traders will also consider the latest reading on the U.S. consumer price index on Tuesday. Economists are looking for inflation to come in at an annualized rate of two per cent.

Sentiment was also helped along after the Russian and Ukrainian foreign ministers held talks in Berlin over the weekend. The discussions were aimed at ratcheting down tensions in eastern Ukraine, where pro-Russian militias have been battling Ukrainian forces.

The tech sector led TSX advancers with BlackBerry Ltd. (TSX:BB) ahead 17 cents to $10.61 as the company said that it has created a new business unit that will combine some of its most innovative technology, including QNX embedded software, Certicom cryptography applications and its patent portfolio.

The financial sector climbed 0.35 per cent in advance of a string of earnings reports coming in from Canada's big banks. Royal Bank (TSX:RY) reports Friday and its shares climbed 56 cents to $80.41.

The metals and mining sector gained 0.25 per cent while September copper was ahead a penny at $3.11 a pound.

The gold sector shed early losses to move up about 0.2 per cent while a lessening of geopolitical tensions pushed December bullion down $6.90 to US$1,299.30 an ounce.

The energy sector was the major decliner, falling 0.42 per cent as September crude dropped 94 cents to US$96.41 a barrel, near its lowest since April, as fears of supply disruptions from major producer Iraq faded, removing much of the risk premium that built up in May and June.

The Canadian Press


Read more Business News

22831


Recent Trending




Today's Market
S&P TSX14989.72+12.80
S&P CDNX906.80-5.96
DJIA17078.797.57
Nasdaq4500.311-5.542
S&P 5001975.98-1.82
CDN Dollar0.8929-0.0029
Gold1208.90-9.90
Oil89.81-2.97
Lumber333.70+4.80
Natural Gas4.126-0.028

 
Okanagan Companies
Pacific Safety0.13-0.005
Knighthawk0.01-0.005
QHR Technologies Inc1.25+0.02
Cantex0.07-0.02
Anavex Life Sciences0.1825-0.0025
Metalex Ventures0.0550.00
Russel Metals34.68+0.19
Copper Mountain Mining2.43-0.09
Colorado Resources0.165+0.015
ReliaBrand Inc0.0157-0.0043
Sunrise Resources Ltd0.065+0.045
Mission Ready Services0.32-0.02

 



23226

FEATURED Property
2092841'cute' mobile home for sale
$16,000
more details
image2image2image2
Click here to feature your property
Please wait... loading


Power-save your way to a down payment

Part 2 of 2 to read Part 1, click here. 5. Dial down your vacations. New York is out. Maybe Buffalo. For West coast, maybe Seattle instead of Hawaii. Use sites like Airbnb (aribnb.ca) to find ch...


A wildly successful manufacturer

Niche food producer “Sweets from the Earth” thrives using innovation, uniqueness and an unwavering focus on quality. A neighbour’s stew turned Ilana Kadonoff off meat at the age of s...


Finding the smart money

Recently I had the privilege of working alongside André Voskuil, a local guru in the world of Alternative Financing. André has quite the reputation in the world of direct investments as ...

_








Member of BC Press Council


22496