Canada’s main stock index trimmed gains after hitting its highest in over two weeks amid broader gains, while investors awaited a week of corporate earnings and the U.S. Federal Reserve’s monetary policy decision.
At 9:47 a.m. ET (13:47 GMT), the Toronto Stock Exchange’s S&P/TSX composite index (.GSPTSE), opens new tab was up 5.12 points, or 0.02%, at 21,974.36.
Nine out of the eleven sectors on the TSX gained with Healthcare (.GSPTTHC), opens new tab rising the most at 0.9%, followed by utilities (.GSPTTUT), opens new tab at 0.7%. Materials (.GSPTTMT), opens new tab and Energy (.SPTTEN), opens new tab stayed at the bottom with a 0.3% decline each.
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On the radar this week is the U.S. Federal Reserve’s next decision on interest rates due Wednesday, which follows a report on Friday that showed inflation rose in line with estimates.
“There’s really no anticipation about interest rates being cut or going up, but obviously the language as to what the Fed says will be everything”, said Allan Small, senior investment advisor of the Allan Small Financial Group with iA Private Wealth.
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Data-wise, a monthly reading of the crucial non-farm payrolls data in the U.S., and a monthly reading of the gross domestic product (GDP) data in Canada is due later in the week.
“If we see a pullback in GDP from where the first few months of the year were, then the calls for cutting rates in June or July this year will be even stronger”, added Small.
In corporate news, Enerplus (ERF.TO), opens new tab slipped about 1% after brokerage RBC downgraded it to “sector perform” from “outperform”.