TSX closes higher along with U.S. markets despite oil price drop

Canada’s main stock index closed up along with U.S. markets despite a drop in the price of oil that pushed energy stocks down. The S&P/TSX composite index closed up 153.29 points at 19,241.44 as the Bank of Canada’s 0.75 percentage point rate increase didn’t come with any surprises, said Jules Boudreau, economist at Mackenzie Investments. The amount of the increase "was as close as you can get to perfectly priced in by market. So it didn’t end up moving markets too much over the day." The Bank of Canada did signal more rate hikes would be required to tame inflation, which had also been widely expected, said Boudreau. The main shift in messaging from the bank was the removal of referring to front-loading rate increases, indicating smaller rate hikes ahead. With nothing from the bank to dampen investor sentiment, the S&P/TSX composite index rode the wider investor enthusiasm on the day that saw big gains in U.S. markets. "It’s been mostly a day of risk-on in global markets. And that has an effect on Canadian markets in general. Every sector in the TSX is up except for energy, due to oil prices being down," said Boudreau. Financials saw a […]

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