Canadian Market Rises Amid Rate Cuts and Inflation Data

Canadian stocks closed strong as the Bank of Canada's rate cut and lower U.S. inflation data boosted investor confidence. However, concerns around tariffs weigh on growth prospects.

Date: 13-03-2025

AI Rating: 6

Market Performance: The Canadian market experienced a positive closing with the benchmark S&P/TSX Composite Index gaining 175.14 points (0.72%) at 24,423.34. This rise was supported by favorable actions from the Bank of Canada and better-than-expected U.S. inflation data.

Bank of Canada's Rate Cut: The Bank of Canada implemented another rate cut, marking its seventh consecutive reduction. This move, while aimed at stimulating economic activity, may also raise concerns about economic growth amid ongoing tariff threats and changing consumer spending habits.

Impact of U.S. Tariffs: The announcement of a 25% tariff on all steel and aluminum imports has implications for Canadian markets, affecting investor sentiment. As Canada is a major supplier to the U.S., these tariffs could impact growth prospects negatively.

Sector Performances: The energy and technology sectors showed notable strength, with companies such as Transcontinental Inc. and Propel Holdings rising significantly. However, several companies like Mattr Corp. and BCE Inc. faced losses, indicating a mixed performance across sectors.

Stocks: TFII KEY MG CJT TCK.B TPZ BBD.B SHOP