Canadian Market Rises Amid Strong Tech Sector Buying

Canadian Market Rises. The Canadian market saw a recovery after a dip, primarily driven by gains in the technology sector. Investors are closely monitoring upcoming monetary policy announcements from both the Bank of Canada and the Federal Reserve.

Date: 29-01-2025

AI Rating: 6

The report indicates positive movements within the Canadian market, especially driven by the technology sector where significant gains were noted. Specifically, Shopify Inc (SHOP.TO) increased by 9.6%, reflecting strong investor sentiment.

**Monetary Policy Impact:** The anticipation of interest rate cuts by the Bank of Canada and a hold on rates by the Federal Reserve suggests a favorable economic environment. Lowering interest rates typically leads to increased investment and consumer spending, which can have a positive impact on earnings across various sectors.

**Earnings Highlights:** Metro Inc (MRU.TO) reported net earnings of $259.5 million for the first quarter of fiscal 2025, representing a 13.6% increase year-over-year. While this growth in net earnings is a positive sign, the stock closed down more than 3%, indicating that the market might have had high expectations that were not fully met or that other negative sentiments outweighed the earnings results.

**Sector Performance:** The technology sector's overall performance is a major highlight with the Information Technology Capped Index climbing 4.41%. Stocks like Celestica and Blackberry also performed robustly. However, a number of companies including Bombardier Inc and Teck Resources experienced declines between 2.5% to 4%, suggesting mixed sentiments across different sectors.

Overall, while the technology sector showed positive earnings influences, mixed performances from other sectors, alongside the pending monetary policies, could introduce volatility in future trading sessions.

Stocks: SHOP.TO BB.TO MRU.TO BBD.B.TO DOO.TO IVN.TO TECK.A.TO