Canada’s primary stock index declined on Thursday, supported somewhat by rising gold prices and growing optimism over a potential Middle East peace agreement. Meanwhile, markets increasingly factored in the likelihood of an interest rate hike later this year, following the US Federal Reserve’s more hawkish outlook.
Given the energy crisis and persistent inflation worries, the US Federal Reserve has decided to keep its benchmark interest rate unchanged. The Fed’s Board of Governors announced in Washington on Wednesday that the rate will stay within the 3.5 per cent to 3.75 per cent range, marking the fourth time this year that it has remained at this level. This decision is the first monetary policy move under new Chair Kevin Warsh, who took over from Jerome Powell, a figure criticized by former President Donald Trump but widely respected on Wall Street.
Investors are attempting to rebound after the Fed signalled that a rate increase remains possible this year. At the same time, oil prices continued to fall, with Brent crude hovering in the US$70 per barrel neighbourhood after Washington and Tehran reached an interim deal to end the conflict, reopen the Strait of Hormuz, and lift US sanctions on Iranian oil.
| TSX | 34,969.26 | -155.85 |  |
| TSXV | 962.89 | -4.23 | |
| CSE | 174.59 | +0.41 |  |
| DJIA | 51,492.55 | -507.12 | |
| NASDAQ | 26,021.66 | -354.69 | |
| S&P 500 | 7,420.10 | -91.25 | |
The Canadian dollar traded for 70.71 cents US compared to 70.86 cents US on Wednesday.
US crude futures traded $0.45 lower at US$75.56 a barrel, and the Brent contract lost $0.04 to US$79.51 a barrel.
The price of gold was down US$139.51 to US$4,221.73.
In world markets, the Nikkei was up 1,151.24 points to ¥71,053.49, the Hang Seng was down 387.35 points to HK$23,924.81, the FTSE was down 108.91 points to ₤10,399.70, and the DAX was up 92.13 points to €24,026.80.