TSX up 1 per cent as oil, gold jump following Fed
All 10 sectors of the main TSX index gained Wednesday as commodities gained and the Fed held interest rates steady but kept the chance of a move by the end of the year open.
The materials and energy sectors of the TSX led the rise and Barrick Gold and Crescent Point Energy were among the star performers of the session.
Wall Street also advanced as oil jumped more than 3 per cent while gold headed towards a 1.5 per cent gain.
European and Asian markets closed before the Fed but were positively impacted by policy announcements and a rate-hold by the Bank of Japan, together with rising commodities.
The S&P/TSX Composite Index closed up 188.8 (1.30 per cent)
The Dow Jones closed up 163.6 (0.90 per cent)
Oil is trending higher (Brent $47.05, WTI $45.55 at 4.10pm)
Gold is trending higher (1337.60 at 4.10pm)
The loonie is valued at U$0.7619
Wholesale trade up again led by motors, food
Canada’s wholesale sales increased in July in value terms, the fourth consecutive month of gains. The 0.3 per cent increase to $56.5 billion was led by the motor vehicle and parts subsector along with food and beverages.
In total, 5 of the 7 subsectors were up, representing 72 per cent of the wholesale trade total. Sales were higher in six provinces led by Ontario and Quebec.
Warning over Canadian economy from OECD
The Paris-based economic think tank the OECD has cut its expectations for the global economy and warned that growth in Canada will be lower than previously forecast.
The new outlook is for 1.2 per cent in 2016, down from June’s 1.7 prediction; for 2017 the OECD now expects 2.1 per cent compared to the previous 2.2 per cent.
Global growth is expected to be 2.9 per cent this year and 3.2 per cent next year; both estimates are 0.1 percentage point lower than the June reading.