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CANADA STOCKS-TSX notches record high as Fed easing boosts liquidity prospects
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CANADA STOCKS-TSX notches record high as Fed easing boosts liquidity prospects

TSX ends up 1.2% at 23,866.27

Technology advances 3%

Energy adds 1.9% as oil settles 1.5% higher

TD Bank names new CEO; stock rises 2.4%

Updates at market close

By Fergal Smith

- Canada's main stock index climbed to a record high on Thursday, led by technology and commodity-linked stocks, as investors bet that the Federal Reserve's outsized interest rate cut could spur a shift from cash into riskier assets globally.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE ended up 273.67 points, or 1.2%, at 23,866.27, eclipsing Monday's all-time closing high.

Wall Street also rallied after the Fed kicked off its easing cycle on Wednesday with a half-percentage-point reduction in rates, rather than a quarter-percentage-point move.

"Traders seem to have decided to take the rate cut news as positive for liquidity, overshadowing concerns that rate cuts could be a sign of a weakening economy," Colin Cieszynski, chief market strategist at SIA Wealth Management, said in a note.

Lower U.S. interest rates reduce the cost of borrowing U.S. dollars. The Fed's move could also encourage other central banks, such as the Bank of Canada, to cut rates at a faster pace, analysts say.

The technology sector rose 3%, helped by a gain of 5.6% for electronic equipment company Celestica Inc CLS.TO. Energy was up 1.9% as the price of oil CLc1 settled 1.5% higher at $71.95 a barrel.

Gold and copper prices also rose, leading to gains for metal mining stocks. The materials group, which includes metal miners and fertilizer companies, added 1.6%.

TD Bank CEO Bharat Masrani will retire next year and hand over the job to the head of its Canadian banking unit Ray Chun, as Canada's second-biggest lender braces for expected U.S. fines for weakness in its anti-money laundering protocols.

Shares of TD TD.TO rose 2.4%, while the financials sector ended 1.3% higher.


(Reporting by Fergal Smith in Toronto and Nikhil Sharma in Bengaluru; Editing by Leroy Leo and Alistair Bell)

((fergal.smith@thomsonreuters.com; +1 647 480 7446))

Disclaimer:This article represents the opinion of the author only. It does not represent the opinion of Webull, nor should it be viewed as an indication that Webull either agrees with or confirms the truthfulness or accuracy of the information. It should not be considered as investment advice from Webull or anyone else, nor should it be used as the basis of any investment decision.
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