04:25 PM EDT, 06/06/2024 (MT Newswires) -- Canada's main stock market, the Toronto Stock Exchange, closed Thursday up 84.08 points, with the S&P/TSX Composite Index closing at 22,229.10, and with that took two days of gains to near 250 points on improved commodity prices, as a feel good factor, largely brought on by Wednesday's cutting of the benchmark interest rate for the first time in four years by Bank of Canada, continues to spread.

Of commodities today, gold prices were higher late afternoon on a lower dollar and steady treasury yields. Gold for August delivery was last seen up $16.50 to US$2,392.00 per ounce.

Also, West Texas Intermediate crude oil closed higher for a second day with risk appetite on the rise following interest-rate cuts in both Canada and Europe. WTI crude for July delivery closed up $1.48 to settle at US$75.55 per barrel, while August Brent crude, the global benchmark, closed up $1.46 to US$79.87.

Most sectors were higher, led by the Battery Metals Index, up 2.4%, Base Metals, up 1%, and Energy up nearly 1%.

Financials was down near 0.4%. Within the sector, fines against Toronto-Dominion Bank ( MLWIQXX ) (TD.TO, TD) tied to U.S. money-laundering probes may total as much as US$4 billion following fresh allegations involving the lender, according to Jefferies Financial Group analysts, Bloomberg News reported, noting that is double previous estimates of the potential impact on Canada's second-largest lender. TD closed down $0.02 at $76.60, at the lower end of its 52-week trading range.

Looking ahead for the broader market, now that the BoC has already set off on the rate-cut path, focus now switches to the United States ahead of the release next week of CPI data and commentary from the Fed following the two-day meeting of it policy committee, both of which are coming Wednesday and may yet help in setting down a foundation for a September cut to U.S. rates.

In a summary of its US CPI preview note, Morgan Stanley forecast core CPI inflation at 0.28% in May on lower services inflation. It noted data in line with its expectation points to May core PCE at 0.22% from 0.25% in April. Meanwhile, Morgan Stanley expects headline CPI at 0.146% due to negative energy inflation.

Separately, in a summary of its Federal Open Market Committee preview note, Morgan Stanley sees "slow inflation progress" this year keeping the Fed on hold with rates for longer. It said Chair Powell "should emphasize patience", but it does still see a first cut in September. .