Canada’s main stock index slightly moved past a record high on Wednesday after the Bank of Canada’s rate decision, while investors looked for potential trade updates as the August 1 tariff deadline drew closer.
The S&P/TSX composite index was up 0.05% at 27,554.54 points.
The BoC, as expected, held its key policy rate at 2.75% for the third time in a row, saying the risk of a severe and escalating global trade war had diminished.
The U.S. Federal Reserve’s rate decision, due later in the day, will also be in focus.
The deadline for Canada to reach a trade deal with the U.S. to avoid facing a 35% tariff on its goods imported to the south of the border is set for August 1.
U.S. ambassador to Canada Pete Hoekstra said on Tuesday he hoped the trade deal would be reached “very soon”.
“It seems that the August 1 deadline is movable in Canada’s sake, if need be…it’s been moved once and could be moved again”, said Douglas Porter, chief economist at BMO Capital Markets.
Porter said President Donald Trump appears eager to tie up loose ends by the end of the week, adding, “We may hear some news…investors will be a little bit more cautious than usual, with all those potential uncertainties”.
Meanwhile, two days of U.S.-China talks ended with both sides agreeing to seek an extension of their tariff truce, set to expire on August 12.
U.S. officials said it would be up to Trump to approve the plan.
On the TSX, technology stocks rose 1% ahead of earnings reports from Wall Street’s tech heavyweights, due after the bell. Celestica continued gains from previous session with a 5.8% rise.
Energy subindex fell slightly as oil prices steadied.
Among individual stocks, Parex Resources rose 4.3% after reporting second-quarter results.
Data showed that the U.S. economic growth rebounded more than expected in the second quarter.
American Dollar Exchange Rate