The U.S. Federal Reserve gave North American stock markets a boost as it announced the economy was strong enough to begin tapering monetary stimulus later this month.
“Initially there was very little reaction and then it pretty much turned positive on the bond and the stock market,†said Michael Currie, vice-president and investment adviser at TD Wealth.
The central bank said in a unanimous decision that it would pare its US$120 billion per month bond purchases by US$15 billion a month. The reduction would be completed by mid 2022 before it considers raising interest rates. However, the pace could be accelerated if needed.
The cut in stimulus measures that were added at the start of the pandemic was expected by markets because the U.S. economy is gaining strength.
The move was viewed as neither hawkish nor dovish even as the Fed continued to insist that inflation is transitory but more persistent than previously thought.
That echoes the Bank of Canada's position on inflation.
“Even though inflation's been dragging on at a 30 year high for a long time now and all of the supply chain issues and tight consumer demand and wages going up, (the Fed) refused to take the word transitory out of the inflation discussion,†Currie said in an interview.
“So people who have been looking for rate hikes, perhaps towards the second half of the year next year, might be taking some good news from this report today.â€
The U.S. dollar moved higher, with the loonie trading for 80.53 cents US compared with 80.62 cents US on Tuesday.
The S&P/TSX composite index closed up 95.09 points to 21,265.10 after hitting an intraday high that was 26 points off its recent record high.
U.S. stock markets all set new records despite some early softness.
In New York, the Dow Jones industrial average was up 104.95 points at 36,157.58. The S&P 500 index was up 29.92 points at 4,660.57, while the Nasdaq composite was up 161.98 points at 15,811.58.
Health care, real estate, consumer discretionary and financial were the leaders.
The sector that includes cannabis producers and pharmaceuticals gained 3.3 per cent as Bausch Health Companies Inc. increased 5.5 per cent to partially reverse heavy Tuesday losses following its quarterly results.
The inflation sensitive real estate sector climbed 1.4 per cent while Sleep Country Canada Holdings Inc. led discretionaries higher.
The heavyweight financials sector rose 0.8 per cent ahead of Thursday's announcement by the Canadian banking regulator where it is expected to lift a moratorium on raising dividends and share buybacks.
Materials rose even though gold prices fell as a private sector jobs report showed U.S. payrolls were better than expected.
The December gold contract was down US$25.50 at US$1,763.90 an ounce and the December copper contract was down 4.5 cents at US$4.32 a pound.
The energy sector was the big laggard, losing one per cent as crude oil prices fell as U.S. stockpiles rose for a second-straight week. Industrials dipped even though Air Canada shares increased 3.9 per cent.
The December crude oil contract was down US$3.05 at US$80.86 per barrel and the December natural gas contract was up 12.8 cents at US$5.67 per mmBTU.
Shares of Imperial Oil decreased 3.8 per cent while Whitecap Resources Inc. was down 2.7 per cent. Partially offsetting the sector's drag was a 1.2 per cent boost for Cenovus Energy Inc. shares after it announced an increase in dividends and share buybacks.
“The markets very much like that news, just like there was similar news from Suncor a week ago,†said Currie.
The increase in crude inventories is believed to be temporary during the refinery maintenance season.
U.S. President Joe Biden is trying to convince OPEC to raise production levels as demand returns, without much success.
“The U.S. doesn't want to drill but OPEC doesn't want to increase production either so that's pushing oil down a little bit.â€
This report by The Canadian Press was first published Nov. 3, 2021.
This week, Avery Haines follows migrants' harrowing journeys across the Darien Gap. Strict new rules to stem the flood of migrants through the notorious stretch of dense jungle appear to be working, but advocates fear it could backfire.
North Carolina officials pledged to get more water and other supplies to flood-stricken areas by Monday after Hurricane Helene left a trail of destruction across the U.S. Southeast and the death toll from the storm rose to nearly 100.
If you're struggling to find a name for your baby, you can get some ideas from a new list of popular names.
John Ashton, the veteran character actor who memorably played the gruff but lovable police detective John Taggart in the 'Beverly Hills Cop' films, has died. He was 76.
This Monday, Sept. 30 is the National Day for Truth and Reconciliation, a federal statutory holiday and day of remembrance for the Indigenous children who never came home from Canadian residential schools, as well as those who survived them.
The space rock — 2024 PT5 — was first spotted in August by astronomers at Complutense University of Madrid using a powerful telescope located in Sutherland, South Africa.
Hezbollah's deputy leader Naim Qassem, in his first public address since Israel assassinated the group's chief last week, said the movement is ready to confront any Israeli ground invasion of Lebanon.
A pedestrian has died after reportedly getting struck by an OPP cruiser in Bala early Sunday morning.
British Columbia saw a rare unanimous vote in its legislature in October 2019, when members passed a law adopting the United Nations Declarations on the Rights of Indigenous Peoples, setting out standards including free, prior and informed consent for actions affecting them.
Bullet casings recovered from the scene of a B.C. woman’s murder 30 years ago will be retested for DNA after the province’s highest court ruled it is “in the interests of justice†to do so in support of an ongoing appeal.
A child was sent to hospital after being attacked by a coyote in northwest Calgary.
A pedestrian has died after reportedly getting struck by an OPP cruiser in Bala early Sunday morning.
Ontario's only First Nation representative at Queen's Park plans to soon table proposed legislation, in his own Indigenous language, to have the National Day for Truth and Reconciliation declared a paid provincial holiday.
British Columbia saw a rare unanimous vote in its legislature in October 2019, when members passed a law adopting the United Nations Declarations on the Rights of Indigenous Peoples, setting out standards including free, prior and informed consent for actions affecting them.
The union representing longshore workers at the Port of Montreal began a three-day strike at two terminals.
Republican JD Vance and Democrat Tim Walz will meet Tuesday in the lone vice presidential debate of the 2024 election, bringing together undercards who have spent two months going after each other and the opposing nominees who top the major-party tickets.
Hezbollah's deputy leader Naim Qassem, in his first public address since Israel assassinated the group's chief last week, said the movement is ready to confront any Israeli ground invasion of Lebanon.
Republicans on Sunday sought to distance themselves from Donald Trump's latest insults of Democratic nominee Kamala Harris during a rambling weekend rally in Wisconsin in which he called her 'mentally disabled.'
A reaction following a fire at a Georgia chemical plant Sunday morning is forcing evacuations and road closures in the area, according to Rockdale County officials.
Witnesses on Monday reported the first Israeli airstrike in central Beirut in nearly a year of conflict, hours after Israel struck targets across Lebanon and killed dozens of people over the weekend.
North Carolina officials pledged to get more water and other supplies to flood-stricken areas by Monday after Hurricane Helene left a trail of destruction across the U.S. Southeast and the death toll from the storm rose to nearly 100.
The Liberal government is announcing more details on its existing strategy and funding to fight hate crimes.
Migrant groups are pushing the federal government to reverse its cap on international study permits and tightening post-graduate work permit qualifications, claiming it will leave many students 'in limbo.'
The government has just weeks to decide if it will meet the $16-billion demand from the Bloc Québécois to stave off an election for a few more months, but the stipulation may be at odds with the political and fiscal plans of the Liberals.
A man from Alberta has been at the Medipal International Hospital in Kampala, Uganda for over two months with a hefty medical bill. He says he can’t leave until it’s been paid for.
More than 550 symptomatic people responded to an online questionnaire about a gastrointestinal illness at a Prince Edward Island shellfish festival last weekend.
A partial masking mandate has returned to Nova Scotia hospitals and provincially run healthcare facilities for visitors and healthcare workers.
The two astronauts stuck at the International Space Station since June welcomed their new ride home with Sunday's arrival of a SpaceX capsule.
The space rock — 2024 PT5 — was first spotted in August by astronomers at Complutense University of Madrid using a powerful telescope located in Sutherland, South Africa.
Canadian innovators and technical leaders gathered in Ottawa Thursday to demonstrate the latest cutting-edge technology.
John Ashton, the veteran character actor who memorably played the gruff but lovable police detective John Taggart in the 'Beverly Hills Cop' films, has died. He was 76.
Francis Ford Coppola’s decades-in-the-making, self-financed epic 'Megalopolis' flopped with moviegoers, while the acclaimed DreamWorks Animation family film 'The Wild Robot' soared to No. 1 at the weekend box office.
Given the sudden popularity of Moo Deng, the Thai national treasure whose name roughly translates as 'bouncy pork,' it was only a matter of time before someone turned her into a digital asset.
The union representing longshore workers at the Port of Montreal began a three-day strike at two terminals.
A strike by grain terminal workers at the Port of Metro Vancouver has ended, their employer announced Friday night.
When Annie Korver sits down with a new corporate or small business client, she encourages them to focus first on the 'truth' part of Truth and Reconciliation.
While libraries might be stereotyped by some as boring or outdated, they’ve become popular digital destinations for young viewers on TikTok.
The Tax-Free Savings Account can be a powerful savings tool and investment vehicle. Financial contributor Christopher Liew explains how they work and how to take full advantage of them so you can reach your financial goals faster.
Matt Perrault has shipped animals in and out of Canada on behalf of owners for more than two decades, handling creatures ranging from birds to bearded dragons, rabbits and ferrets.
South Korea's Si Woo Kim missed a birdie putt on No. 18 and lost his match to Keegan Bradley as the United States clinched another win over the International team at the Presidents Cup.
When the key to a win is work ethic, it is not surprising to see Mattias Ekholm rise to the occasion. Ekholm had a goal and two assists as the Edmonton Oilers snapped a three-game skid with a 5-4 victory over the Seattle Kraken on Saturday.
On an eventful Saturday at the Presidents Cup, the U.S. took an 11-7 lead over an International team that saw big performances from the world's No. 1 ranked golfer, Scottie Scheffler.
A tale about a taxicab hauling gold and sinking through the ice on Larder Lake, Ont., in December 1937 has captivated a man from that town for decades.
A U.S. driver somehow squeezed her vehicle through a parkade hallway at a Metro Vancouver casino Thursday, before getting stuck at an elevator bank.
More than 12,000 vehicles in Canada are included in two separate recalls by Toyota Motor Corp. and Mazda.
A tale about a taxicab hauling gold and sinking through the ice on Larder Lake, Ont., in December 1937 has captivated a man from that town for decades.
When a group of B.C. filmmakers set out on a small fishing boat near Powell River last week, they hoped to capture some video for a documentary on humpback whales. What happened next blew their minds.
A pizza chain in Edmonton claims to have the world's largest deliverable pizza.
Sarah McLachlan is returning to her hometown of Halifax in November.
Wayne MacKay is still playing basketball twice at Mount Allison University at 87 years old.
A man from a small rural Alberta town is making music that makes people laugh.
An Indigenous artist has a buyer-beware warning ahead of Sept. 30, the National Day for Truth and Reconciliation.
Police are looking to the public for help after thieves broke into a Lethbridge ice creamery, stealing from the store.
An ordinary day on the job delivering mail in East Elmwood quickly turned dramatic for Canada Post letter carrier Jared Plourde. A woman on his route was calling out in distress.
Here are five things to do in Vancouver this weekend to mark the National Day for Truth and Reconciliation.
Tactical evacuations were underway in Christina Lake, B.C., Sunday afternoon due to an out-of-control wildfire, according to officials.
Bullet casings recovered from the scene of a B.C. woman’s murder 30 years ago will be retested for DNA after the province’s highest court ruled it is “in the interests of justice†to do so in support of an ongoing appeal.
Ontario's only First Nation representative at Queen's Park plans to soon table proposed legislation, in his own Indigenous language, to have the National Day for Truth and Reconciliation declared a paid provincial holiday.
One person is dead following a shooting in Toronto’s Weston neighbourhood Monday morning.
Toronto police are investigating after two homes and a vehicle were struck by gunfire in separate areas late last night in Rosedale-Moore Park and York Mills.
The Calgary police homicide unit is investigating after two people were found dead in a home in the community of Penbrooke Meadows.
Calgarians gathered for a rally on Sunday in support of the people of Lebanon as conflict between Israel and Hezbollah continues to escalate in the region.
A child was sent to hospital after being attacked by a coyote in northwest Calgary.
The family of Kendyl Smith-Trimm, a young girl who bravely battled cancer, has raised a staggering $66,500 in her memory for the Children's Hospital of Eastern Ontario (CHEO).
The federal holiday on Sept. 30 will bring some schedule changes in Ottawa as Canada marks the National Day for Truth and Reconciliation.
Remembrance Day preparations are underway at Beechwood Cemetery and hundreds of people took a first step of showing their respect.
The union representing longshore workers at the Port of Montreal began a three-day strike at two terminals.
Provincial police (SQ) say a head-on crash on Highway 30 in Candiac has left two people dead.
The provincial Crown corporation in charge of liquor sales in Quebec says a computer issue resulted in all its products being temporarily listed at 30 per cent off on its website.
A person is in critical condition after a serious crash that closed down Highway 795 south of Calmar on Sunday.
Kim Ruether lifted her son's eyelid and saw his still, dilated pupil staring at the ceiling as he lay on a stretcher in a northwestern Alberta hospital hallway a decade ago. She says she didn't need a doctor to tell her the boy was dead.
Kris Kristofferson, a Rhodes scholar with a deft writing style and rough charisma who became a country music superstar and A-list Hollywood actor, has died.
Women entrepreneurs from across New Brunswick were front and centre at a ‘pop-up shop’ showcase on Sunday.
A mother in a community where the cost of living is one of the highest in the country says grocery prices are 'inhumane' and retailers are putting profits ahead of people’s basic human right to food.
The East Coast Ukrainian Festival kicked off at Pier 21 in Halifax on Saturday, celebrating Ukrainian culture and traditions.
Residents in Tadoule Lake, Man., and Churchill can expect to see heavy rain trickle in Sunday afternoon, lingering until Monday evening.
Canadian Space Agency astronaut Jeremy Hansen touched down in Winnipeg this week, ahead of his lunar mission set to launch in a year’s time.
Winnipeg Fire Paramedic Service crews believe a candle caused a major house fire in the city’s William Whyte neighbourhood Sunday afternoon.
The Regina Public Library (RPL) downtown hosted an architectural tour on Sunday, for folks looking to learn more about the building's history.
In front of the Saskatchewan Legislative building, law enforcement officers and members of the public gathered to pay tribute to peace officers who died in the line of duty.
A man is in custody after allegedly robbing a business in McLean, Sask. with an edged weapon on Saturday.
People in Guelph may notice a new addition at the entrance to Franchetto Park in Guelph.
A young motorcyclist has been taken to an out-of-region hospital after a single vehicle crash in Woolwich Township.
A grassroots organization is calling on the provincial government to reopen the Ontario Science Centre after it was abruptly closed in June following the discovery of structural issues in the building.
The fourth and final walk in memory of Megan Gallagher drew around one hundred people in Saskatoon on Sunday.
RCMP are seeking tips after a church on Main Street in Loon Lake burned to the ground.
Saskatoon Police Service has arrested a suspect in connection with two separate stabbing incidents that occurred earlier this month.
Ontario Provincial Police remind the public that ‘a case is never closed until it is solved,’ while highlighting the force's continued investigation of the 1996 disappearance of Melanie Ethier.
The government has just weeks to decide if it will meet the $16-billion demand from the Bloc Québécois to stave off an election for a few more months, but the stipulation may be at odds with the political and fiscal plans of the Liberals.
The CEO of the Ottawa Mission is responding to controversial comments made this week by Premier Doug Ford about those living in homeless encampments that received swift blowback from advocates.
The very first -20 degree Celsius reading of the year has been recorded in Canada’s arctic – a good reminder that summer is officially behind us.
A crash between a car and motorcycle closed a portion of Oxford St. in downtown London for several hours on Sunday.
On Saturday night at her parents’ home in Delaware, Ont. the Olympic bronze medallist in pole vault welcomed everyone who played a role in getting her to the podium in Paris.
A pedestrian has died after reportedly getting struck by an OPP cruiser in Bala early Sunday morning.
OPP officers arrested a suspect while he was in the middle of a possible theft Sunday morning in Wasaga Beach.
A Barrie police officer suffered serious but non-life-threatening injuries while arresting a suspect Sunday afternoon.
The very first -20 degree Celsius reading of the year has been recorded in Canada’s arctic – a good reminder that summer is officially behind us.
Two and a half years after losing her best friend and first love to suicide, Brooke Ford shared her story of grief and resilience at the CMHA Windsor-Essex Suicide Awareness Walk.
The BSI aims to elevate Black academic excellence, promoting scholarship, mentorship, and cultural knowledge.
Bullet casings recovered from the scene of a B.C. woman’s murder 30 years ago will be retested for DNA after the province’s highest court ruled it is “in the interests of justice†to do so in support of an ongoing appeal.
The fertility rate in Canda reached an all-time low in 2023, and the lowest rate was recorded in British Columbia, according to new data from Statistics Canada.
New Democrat Leader David Eby, speaking before his largest crowd of the provincial election campaign, says he's making a tax relief election promise that will benefit more than 90 per cent of people in British Columbia.
Fire crews in Vernon, B.C., responded to a large house fire early Saturday morning.
A pair of runaway pigs are in the custody of an animal sanctuary in the Okanagan after evading police and volunteers for hours earlier this week.
The Red Bridge, a historic landmark in Kamloops, B.C., was completely destroyed by fire early Thursday morning.
The sentencing for three men convicted of helping lead and coordinate the COVID-19 protest blockade at Coutts, Alta., in 2022 has been delayed.
A 10-year-old boy from Lethbridge is being praised as a hero after a routine summer outing at the pool nearly turned tragic for his friend.
A man and woman have been charged after a Lethbridge ice creamery was broken into earlier this week. Staff arrived at Cookie Crimes, in the 300 block of Sixth Street South, just before 5:30 a.m. on Monday to discover the front window broken.
Overnight on Thursday as the community of Elliot Lake was resting to prepare for the upcoming Kraft Hockeyville celebrations, when vandals struck a building that has been top of mind for the northern Ontario city for more than a year.
Ontario Provincial Police remind the public that ‘a case is never closed until it is solved,’ while highlighting the force's continued investigation of the 1996 disappearance of Melanie Ethier.
Sault residents may notice some commotion on the Algoma University campus over the next two weeks as a team conducts an archaeological search.
A mother in a community where the cost of living is one of the highest in the country says grocery prices are 'inhumane' and retailers are putting profits ahead of people’s basic human right to food.
A soccer game in England on Tuesday night drove a spike in online traffic across the Atlantic to a website launched by the Newfoundland and Labrador government.
Newfoundland and Labrador sponsored a minor football team in England, now they’re about to play one of the biggest clubs in European soccer.
The Shopping Trends team is independent of the journalists at Â鶹´«Ã½. We may earn a commission when you use our links to shop. Read about us.
