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TSX up 0.3%

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The Bank of Canada cuts policy rates by 25 basis points

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US job openings fall to three-and-a-half-year low in July

(Updated at 10:53 a.m. ET/ 1453 GMT)

By Nikhil Sharma

Sept 4 (Reuters) - Canada's main stock index rose

slightly on Wednesday on upbeat sentiment following the Bank of

Canada's decision to trim its monetary policy rate for the third

time this year.

At 10:53 a.m. ET (14:53 GMT), the Toronto Stock Exchange's

S&P/TSX composite index was up 70.62 points, or 0.31%,

at 23,113.07.

The Bank of Canada cut its key policy rate by 25 basis

points to 4.25%, but raised concerns that weaker-than-expected

growth could mean inflation slowing below the central bank's 2%

target.

A steep decline in Canada's annual inflation rate and a weak

labor market, coupled with lackluster economic growth, built a

stronger case for the Canadian central bank to loosen its credit

conditions.

This process of lowering rates isn't over, said Brian

Madden, chief investment officer at First Avenue Investment

Counsel, adding that the central bank is "very mindful that

weakness is starting to emerge in the labor market."

At least ten sectors on the TSX logged gains, led by the

healthcare sector, which rose 1.44%. Bausch Health Companies ( BHC )

rallied 2.3%, supporting gains in the index.

The rate-sensitive real estate sector gained

1.4%, while capped communications sector added 1%.

The heavyweight energy sector declined 0.6% as oil

prices edged down after falling nearly 5% in the previous

session.

Canada's 2-year benchmark yield fell 6 basis

points after the rate decision.

Meanwhile, in the United States, the Federal Reserve is also

expected to begin cutting interest rates during its next policy

meeting on Sept. 18.

Job openings in the U.S. fell to a three-and-a-half-year low

in July, suggesting a slowdown in the labor market. On the other

hand, U.S. factory orders rose by a stronger-than-expected 5% in

July.

Among individual stocks, Kits Eyecare's ( KTYCF ) shares

rose 1% after the eyecare provider revised its third-quarter

revenue guidance upwards.