TSX Ends On Firm Note After BoC Rate Cut Decision

(RTTNews) - The Canadian market closed on a firm note on Wednesday, lifted by gains in energy and technology sectors.

The Bank of Canada's rate cut announcement, and tamer than expected U.S. consumer price inflation data contributed to the positive show by Canadian stocks.

Worries about tariffs and their impact on growth limited market's gains.

The U.S. Government's 25% tariff on all steel and aluminum imports took effect today, significantly impacting Canada, which is the largest foreign supplier of these metals to the United States.

The benchmark S&P/TSX Composite Index ended with a gain of 175.14 points or 0.72% at 24,423.34, nearly 100 points off the day's high of 24,516.28.

Transcontinental Inc. shares climbed 7.1% and Propel Holdings rallied 6.1%. Bombardier Inc., Aura Minerals, MEG Energy Corp., Shopify Inc., Teck Resources, Celestica Inc. and Pan American Silver Corp gained 3 to 6%.

AtkinsRealis, ARC Resources, Molson Coors Canada Inc., Tourmaline Oil Corp., Cargojet Inc., Alamos Gold, iA Financial Corporation, Empire Company, Keyera Corp., Manulife Financial Corporation, Capital Power Corporation, Cameco Corporation, Onex, Descartes Systems Group, Stantec and TFI International gained 1.5 to 3%.

Mattr Corp., Labrador Iron Ore, Telesat Corporation, Bausch + Lomb, Pet Valu Holdings, Quebecor Inc., CAE Inc. and BCE Inc. closed notably lower.

The Bank of Canada today announced its widely expected decision to lower interest rates by another 25 basis points, making its seventh straight rate cut.

While the central bank noted Canadian economic growth has come in stronger than expected, it warned the pervasive uncertainty created by continuously changing U.S. tariff threats is restraining consumers' spending intentions and businesses' plans to hire and invest.

The Bank of Canada said it will be carefully assessing the timing and strength of both the downward pressures on inflation from a weaker economy and the upward pressures on inflation from higher costs.

Data released by the Labor Department showed consumer prices in the U.S. increased by slightly less than expected in the month of February, edging up by 0.2%, after climbing by 0.5% in January. Economists had expected consumer prices to rise by 0.3%.

The report also said the annual rate of consumer price growth slowed to 2.8% in February from 3% in January. Economists had expected the pace of price growth to edge down to 2.9%.