TSX rises as tech, materials gain amid eased rate cut expectations

Kitco Media
By Reuters
Published:
Updated:
Reuters
TSX rises as tech, materials gain amid eased rate cut expectations teaser image

Oct 30 (Reuters) - Canada's main stock index inched upward on Thursday, led by technology and materials sectors, as investors digested the tempered interest rate cut outlook in both Canada and the U.S., alongside the new U.S.-China trade agreement.

At 10:11 a.m. ET (1411 GMT), Toronto's S&P/TSX composite index (.GSPTSE), was up 0.3% at 30,223.34 points.

Wall Street indexes, however, trended downward following mixed earnings reports from major technology companies and remarks from Federal Reserve Chair Jerome Powell that cast doubt on further rate cuts this year.

In Canada, rate cut expectations were similarly adjusted after the central bank signaled a potential hold following a quarter-point rate reduction and lowered economic growth forecasts on Wednesday.

Traders are now pricing in about a 90% probability of a pause at the next Bank of Canada meeting.

"We need to take a bigger picture view (as) absence of rate cuts potentially signals some positives as well—namely, that we're likely experiencing a more stable economic environment," said Josh Sheluk, portfolio manager at Verecan Capital Management.

On the TSX, information technology (.SPTTTK), shares rose 0.8%.

Materials (.GSPTTMT), also gained 0.9% as gold prices jumped 2%, supported by U.S. dollar weakness following the Fed's rate decision.

The healthcare sector (.GSPTTHC), emerged as the top performer, rising 2.9%, with drugmaker Bausch Health (BHC.TO), jumping 14.6% after raising its full-year 2025 revenue outlook.

Heavyweight financials (.SPTTFS), also traded positively with 0.2% gains.

On the trade front, U.S. President Donald Trump agreed to roll back some tariffs on Chinese imports in exchange for Beijing resuming soybean purchases, maintaining rare earth exports, and strengthening efforts against fentanyl trafficking.

Investors, however, remain cautious, fearing the tariff truce may prove short-lived given the history of promising trade negotiations later derailed by complications.

The energy sector (.SPTTEN), declined 0.7% as oil prices fell, while investors evaluated the implications of the trade agreement between the world's top oil consumers.

Reporting by Ragini Mathur in Bengaluru; Editing by Shailesh Kuber and Vijay Kishore

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.