Update: TSX Hits Record High, Gains 85 Points as Tech, Energy Shares Rise
Canada's main stock market finished in record territory on Wednesday, after minutes from the U.S. Federal Reserve's July meeting indicated the Fed will continue to support the U.S. economy, even if that means keeping interest rates near zero for longer. Analysts said the minutes contained no real surprises.
The S&P TSX Composite Index closed up 85 points at 15,561, after earlier touching 15,570, breaking the previous high of 15,549 set last month. Tech and energy stocks led the index higher as crude prices advanced.
Heavily traded Banro Corporation (BAA.TO) gained 14% after earlier this week closing a $35 million backstop facility and signing gold contracts worth $121 million. Sears Canada Inc. (SCC.TO) reported a quarterly net loss and a decline in same store sales, which the company partly attributed to unseasonably cold weather this past spring. SCC shares lost $0.07 to $16.
On the oil market, West Texas Intermediate crude rose for the first time in three days as U.S. inventories declined more than expected last week. Stockpiles decreased by 4.47 million barrels in the week ended Aug. 15, the Energy Information Administration, the Energy Department's statistical arm, said in a weekly report. Analysts surveyed by Bloomberg had expected a drop of 1.75 million
Gold fell to a two-week low after minutes of the Federal Reserve's July meeting raised the possibility that interest-rate increases may happen sooner than anticipated. Gold for immediate delivery fell 0.5% to $1,288.99 an ounce after dropping to 1,288.01, the lowest since Aug. 6.