Canada’s top stock index flatlined on Wednesday, as investors weighed key monetary policy decisions from both the Bank of Canada and the US Federal Reserve. Both central banks have resumed cutting interest rates, responding to recent indicators that suggest weakening job markets and a slowdown in economic growth across Canada and the United States. Canada’s central bank lowered its overnight rate from 2.75 per cent to 2.50 per cent, marking its first rate cut since March.
Traders mostly seemed to backed the Federal Reserve’s decision to reduce rates, viewing it as a potential catalyst for economic support. This move, the first cut in nine months, comes amid growing concerns over a cooling labor market, even as inflation continues to hover above the Fed’s 2 per cent target.
| TSX | 29,321.66 | +6.43 |  |
| TSXV | 875.13 | -1.14 |  |
| CSE | 155.23 | -0.37 | |
| DJIA | 46,018.32 | +260.42 | |
| NASDAQ | 22,261.33 | -72.63 | |
| S&P 500 | 6,600.35 | -6.41 | |
The Canadian dollar traded for 72.59 cents US compared to 72.72 cents US on Tuesday.
US crude futures traded $0.46 lower at US$64.06 a barrel, and the Brent contract lost $0.49 to US$67.98 a barrel.
The price of gold was down US$28.85 to US$3,659.66.
In world markets, the Nikkei was down 111.89 points to ¥44,790.38, the Hang Seng was up 469.88 points to HK$26,908.39, the FTSE was up 12.71 points to ₤9,208.37, and the DAX was up 17.71 points to €23,346.95.
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