Loonie recovers following dovish interest rate hike

first_img S&P/TSX composite hits highest close since March on strength of financials sector TSX gets lift from financials, U.S. markets rise to highest since March Share this article and your comments with peers on social media While the rate hike was widely expected, investors were initially taken aback by the central bank’s cautious tone about future rate hikes. On Bay Street, the S&P/TSX composite index was up 27.82 points to 16,326.70, with the health-care, base metals and energy sectors among key advancers. South of the border, the Dow Jones industrial average surged 322.79 points to 26,115.65, closing above 26,000 for the first time. The S&P 500 index was up 26.14 points to 2,802.56 and the Nasdaq composite index was up 74.59 points to 7,298.28. In commodities, the February crude contract was up 24 cents to US$63.97 per barrel and the February natural gas contract added US10¢ to US$3.23 per mmBTU. The February gold contract was up US$2.10 cents to US$1,339.20 an ounce and the March copper contract was down US3¢ to US$3.19 a pound. Read: Bank of Canada raises key rate target The loonie rebounded from its earlier losses following the Bank of Canada’s dovish interest rate hike announcement today, as Wall Street soared to new highs. The Canadian dollar closed at an average trading value of US80.48¢, down 0.04 of a U.S. cent, recovering from greater losses earlier in the session after the central bank said it would raise its key interest rate target by a quarter of a percentage point to 1.25%. Keywords Marketwatch center_img Facebook LinkedIn Twitter Canadian Press Related news Toronto stock market dips on weakness in the energy and financials sectorslast_img read more