12:18 PM EST, 12/10/2024 (MT Newswires) -- The Toronto Stock Exchange is down 69 points at midday, with all sectors lower. Health care and miners are the biggest decliner, down 1.5% and 1.2%, respectively.
Oil prices eased early on Tuesday, remaining firmly rangebound despite new stimulus measures from China and turmoil in Syria following the collapse of the Assad regime.
Gold traded higher for a third-straight session, pushing above US$2,700, amid interest-rate cuts and safe-haven buying in response to fresh turmoil in the Middle East.
Natural gas prices fell as long-term forecasts see mild weather coming for most of the country.
On Canadian rates, S&P Global Ratings expects the BoC to cut its key benchmark interest rate by another 50 basis points to 3.25% at its policy meeting this week. This will be the fifth rate cut since policy normalization began in June.
On why it matters, S&P said interest rates in Canada remain high considering weak economic activity, with below-potential growth and persistent slack in the labor market. It noted that even with a 50-basis-point cut in December, the overnight rate will remain at the high end of the 2.25% to 3.25% neutral range and well above the 1.75% peak from the decade before the COVID-19 pandemic. The central bank will likely keep the policy rate accommodative to stimulate growth and employment, given inflation is near its 2% target, it added.
S&P anticipates the BoC will continue to cut rates steadily, likely to 2.25% by the middle of next year.