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PrintCANADA STOCKS-TSX dips as attention remains on Fed meeting
BY Reuters | ECONOMIC | 03/18/25 10:45 AM EDT(Updates with morning prices)
By Nikhil Sharma
March 18 (Reuters) - Canada's main stock index was largely unchanged on Tuesday as investors awaited the U.S. Federal Reserve's outlook on interest rate and economic growth amid the trade war.
The Toronto Stock Exchange's S&P/TSX composite index was down 0.2% at 24,731.62 points, after two straight sessions of gain.
Traders expect the Fed to keep rates unchanged after its two-day meeting ends on Wednesday. Instead, the market is focused on policymakers' comments amid concerns that the trade war could hit global growth.
The OECD said on Monday President Donald Trump's tariff hikes may put inflationary pressures and drag down growth in Canada, Mexico and the U.S.
"It must be extremely difficult for central banks to set any kind of policy in this environment not knowing what the next day is going to bring in terms of new pronouncements," said Michael Sprung, president at Sprung Investment Management.
The Bank of Canada had also raised concerns about inflationary pressures and weaker growth after its policy meeting last week.
Canada's annual inflation rate showed a surprise jump to 2.6% in February - the first time in seven months that inflation has crossed the BoC's target of 2%.
There is worry that the February inflation numbers coming in a particularly uncertain trade environment means Canada could be "heading into an environment like stagflation", Sprung said.
The information technology sector led declines with a 2% fall, tracking the 1.8% decline in Wall Street's tech-heavy Nasdaq index.
On the other hand, materials added 0.9% on the back of gold's record-breaking run as a renewed conflict in the Middle East and U.S. trade tariff concerns boosted the safe haven asset's demand.
Among individual stocks, Definity Financial
($1 = 1.4291 Canadian dollars) (Reporting by Nikhil Sharma in Bengaluru; Editing by Leroy Leo)
