TSX up 140 Points to New All-time High, Boosted by Energy, Utilities, Sectors

12:18 PM EDT, 09/22/2025 (MT Newswires) -- The Toronto Stock Exchange is up near 140 points at midday, to a new all-time high, with energy, up 1.4%, the biggest gainer, followed by utilities, up 0.8%.

The Federal Reserve and Bank of Canada last week both reduced policy rates by 25 bps and were cautious concerning follow-up cuts. The latter was more surprising for the Fed than the BoC, causing Treasuries to sell-off along the curve, writes BMO, in its morning note.

Later this week, the marquee data release is GDP for July, due Friday. BMO's Shelly Kaushik said the economy is expected to have eked out a small expansion, ending a three-month string of contraction. BMO's call of +0.1% is in line with StatCan's flash estimate.

BMO also noted Bank of Canada speakers' corner today: Deputy Governor Kozicki was slated to do a virtual panel on "Monetary policy frameworks: recent developments and outlook - an international comparative view" (at 9:45am ET). Senior Deputy Governor Rogers is paneling at the London School of Economics on "Supervisors on Supervision - Culture in the Financial Sector" (at 1:15pm ET). Later this week (Tuesday), Governor Macklem will speak on "Global trade and capital flows" (at 2:30pm ET).

Edward Jones, in a Sept. 19 note, said this proactive approach on rates from the Fed and BoC, even in the face of elevated inflation, was well received by markets. However, signals from both central banks around the path for future policy were vague. Most FOMC members expect to deliver additional cuts, albeit with big differences over the timing and extent of these moves. The BoC offered little forward guidance on rates, noting that upcoming data will shape any decision. "This ambiguity could spur volatility as investors try to understand what new growth, labour market and inflation data mean for central banks' next steps," Edward Jones said. "Further signs of soft labour-market dynamics should keep the burden on both central banks to cut rates further, in our view."

According to Edward Jones, there looks to be less scope to cut rates in Canada, given that these have already fallen 250 basis points (2.5%) from their peak to 2.5% at present. "However, the combination of easing inflation pressures and a weak growth and labour-market backdrop should persuade the central bank to cut rates at least once more this year, in our view," it added.

In other news, the federal government last Friday said it is launching public consultations on the Canada-United States-Mexico Agreement, or CUSMA, ahead of next year's planned review of the North American trade pact.

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