Canada’s main stock index opened higher on Wednesday, as rising gold prices lifted the materials sector.
The Toronto Stock Exchange’s S&P/TSX Composite Index rose 26.7 points, or 0.17 per cent, to 15,645.63.
The Canadian dollar was little changed against its U.S. counterpart on Wednesday, pulling back from an earlier nine-day high as investors turned attention to the U.S. Federal Reserve interest rate decision.
The Canadian dollar was trading near flat at $1.2843 to the greenback, or 77.86 U.S. cents.
The currency’s weakest level of the session was $1.2857, while it touched its strongest since April 23 at $1.2803.
The loonie got a boost on Tuesday from data showing the economy expanded by a stronger-than-expected 0.4 per cent in February and by remarks from Bank of Canada Governor Stephen Poloz.
Mr. Poloz said there is good reason to believe the central bank can manage the risks of Canada’s high household debt, even as he signaled that interest rate hikes will continue, increasing the cost of that debt.
The S&P and Dow opened slightly lower on Wednesday as caution set in ahead of the Federal Reserve’s decision on monetary policy, while Apple’s 3.6-per-cent jump after results helped small gains on the tech-heavy Nasdaq.
Dow Jones Industrial Average fell 1.42 points, or 0.01 per cent, at the open to 24,097.63. The S&P 500 opened lower by 0.56 points, or 0.02 per cent, at 2,654.24. The Nasdaq Composite gained 7.74 points, or 0.11 per cent, to 7,138.45 at the opening bell.
Expectations the Fed will signal more policy tightening ahead kept investors wary of big market moves, especially after currency markets were roiled this week by the dollar’s surge to 3 1/2-month highs against a basket of currencies.
Despite U.S. companies being on track to post their strongest quarterly profit growth in seven years, worries about inflation and rising raw material costs have weighed on investors’ minds.
Apple rose after it posted resilient iPhone sales in the face of waning global demand and promised $100 billion in additional stock buybacks.
The company’s suppliers Cirrus Logic, Lumentum Holdings and Skyworks Solutions were also all up.
Recent data showed inflation hit the Fed’s 2-per-cent target, while another set of data showed commodity prices have been rising in the wake of the Trump administration’s tariffs on steel and aluminum imports.
“Our colleagues expect the Committee to upgrade the inflation language to note that inflation has risen and is near their 2 percent objective,” Deutsche Bank strategist Jim Reid wrote in a note to clients.
“They could also note that market-based measures of inflation compensation have risen further in recent months.”
Traders have priced in a 94.3-per-cent chance that the Fed will raise rates a quarter percentage point in June, according to the CME Group’s Fedwatch tool.
Data showed U.S. private payrolls rose 204,000 in April, beating expectations by 4,000, but notched their smallest increase since November. The data comes ahead of the more comprehensive U.S. non-farm payrolls reports on Friday.
A Trump administration delegation including Treasury Secretary Steven Mnuchin is set to visit Beijing on Thursday and Friday for talks with top Chinese officials to settle trade differences.