Canada’s main stock index opened the week trading mostly flat, stabilizing after Friday’s pullback as investors shift focus to major central bank decisions. The S&P/TSX Composite Index slipped 0.5% in the previous session, losing 166 points to close at 31,311.41, with decliners narrowly outpacing gainers. Despite the dip, the index recently touched record highs, supported by strong quarterly results from Canada’s major banks.
Market sentiment is being shaped largely by expectations that the U.S. Federal Reserve will cut interest rates again this Wednesday. Anticipation strengthened after the delayed September core PCE index—widely viewed as the Fed’s preferred inflation measure—showed softer-than-expected price growth. Coupled with weakening labor market signals and cooling consumer spending, investors are increasingly confident the Fed will move ahead with additional policy easing to support the U.S. economy.
The Bank of Canada will also make its rate announcement on Wednesday, though analysts broadly expect policymakers to hold the benchmark rate at 2.25%. With inflation now firmly within the target range and the Canadian economy showing steady growth, economists project that interest rates could remain unchanged until at least 2027, reducing the likelihood of near-term cuts.
Gold prices were mostly stable, supported by a weaker U.S. dollar and rising expectations of a Fed rate cut. Spot gold inched up 0.4% to $4,212.67 per ounce, while U.S. gold futures dipped slightly to $4,242.15. Investor caution kept gains modest despite growing conviction that monetary policy will loosen.
Oil prices retreated after hitting two-week highs, as traders locked in profits ahead of the Fed decision. Brent crude fell 1.1% to $63.08 a barrel, while WTI slipped to $59.43. Broader energy market sentiment remains sensitive to geopolitical developments, including slow progress in Ukraine peace efforts and ongoing G7–EU discussions about replacing the Russian oil price cap with a stricter maritime services ban.


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