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Toronto stocks hit record high on BoC rate-cut optimism

Canada's primary stock index hit a. record high up on Wednesday in a broadbased rally, as investors. stayed positive about the possible outsized rate of interest. cut by the Bank of Canada next week.

The Toronto Stock Exchange's S&P/ TSX composite index. was up 115 points, or 0.47%, at 24,554.08 and eclipsed. the record high hit on Friday.

A minimum of 10 sectors on the index logged gains, led by the. health care sector which leapt over 1%, followed by. rate-sensitive property and energies.

The materials sector also increased 0.7%, supported by. gold costs that acquired on weaker equities and bond yields,. while copper rates likewise gave a helping hand.

This is more of a followthrough from yesterday's news with. the CPI print coming in lower than anticipated at 1.6% which is. below the Bank of Canada's 2% target, stated Ian Chong, financial investment. expert in the beginning Avenue Financial Investment Counsel.

Chong added there is a strong case for a half point rate cut. on Oct. 23 and this needs to be encouraging for the Canadian stock. market.

The BoC has actually offered 3 quarter-point cuts this year and. traders see a 79.3% opportunity for a 50-basis-point cut at the. policy meeting next week.

Canada's infotech sector was the. just outlier, dropping 0.6%, in line with Wall Street's. tech-heavy Nasdaq index losses.

Amongst datasets, Canadian factory sales fell by 1.3% in. August from July on lower sales of main metals, as well as. petroleum and coal items.

Independently, Canada's housing starts rose less than expected. in September with increased groundbreaking on multi-unit and. single-family-detached urban homes.

Across the border, financiers parsed quarterly earnings from. major banks, including Morgan Stanley that reported. strong third-quarter earnings.

Amongst specific stocks, Saudi Arabia's Manara Minerals is. in advanced speak to purchase a minority stake in Canadian miner. Very First Quantum Minerals' Zambian copper and nickel. possessions. Shares of First Quantum increased 4.8% in early trading.

(source: Reuters)