Canada’s main stock edged higher at open on Wednesday as gains in tech companies offset losses in materials stocks, ahead of a widely expected interest rate hike by the U.S. Federal Reserve.
The Toronto Stock Exchange’s S&P/TSX composite index was up 15.45 points, or 0.1 per cent, at 16,174.95.
The Canadian dollar was little changed against its U.S. counterpart on Wednesday, trading in a narrow range as oil prices fell and the U.S. dollar climbed ahead of an expected interest rate hike by the U.S. Federal Reserve.
The Canadian dollar was nearly unchanged at $1.2955 to the greenback, or 77.19 U.S. cents.
The currency, which last Thursday touched its strongest level in more than three months at $1.2885, traded in a narrow range of $1.2945 to 41.2966.
The U.S. dollar rose against a basket of major currencies before a widely anticipated Fed rate hike priced in by investors still on edge about a trade row between the United States and China.
U.S. stocks opened slightly higher on Wednesday ahead of a widely expected Federal Reserve interest rate hike, with investors focusing on the central bank’s steer on the pace of monetary tightening.
The Dow Jones Industrial Average rose 44.65 points, or 0.17 per cent, at the open to 26,536.86.
The S&P 500 opened higher by 1.42 points, or 0.05 per cent, at 2,916.98. The Nasdaq Composite gained 4.21 points, or 0.05 per cent, to 8,011.68 at the opening bell.
With a third rate hike all but certain, and chances of a fourth increase in December firming after robust consumer confidence data on Tuesday, investors are focused on whether healthy economic growth will prompt the Fed to ramp up the pace of monetary policy tightening.
Some analysts are expecting a more aggressive tilt, whether it comes in the policy statement at 2 p.m. ET (1800 GMT), the accompanying economic and interest rate projections, or at Fed Chairman Jerome Powell’s press conference.
“The market likes to be unchanged going into the Fed decision just so it doesn’t have a view in either direction and be ready,” said Michael Antonelli, managing director, institutional sales trading at Robert W. Baird in Milwaukee.
“The theme of today is going to be what the Fed’s forward guidance looks like ... which is important to participants so they can gauge where the yield curve will go or how they think the Fed will let the economy run.”
U.S. 10-year Treasury yields are a shade below their seven-year peak. Higher bonds yields makes shares less attractive, especially those of high-dividend paying companies such as utilities, real estimate and telecoms.
Reuters