(Updates with morning prices)
By Ragini Mathur
Oct 15 (Reuters) - Canada's main stock index hit a
record high on Wednesday, with mining stocks leading the
advance, buoyed by renewed U.S. rate cut optimism and robust
earnings from major U.S. banks that signaled strength in the
financial sector.
At 10:04 a.m. ET (1404 GMT), Toronto's S&P/TSX composite
index was up 1.4% at 30,776.09 points, eclipsing the
record intraday high it reached on October 6.
Gains were broad-based, with all major sectors trading in
positive territory.
Information technology stocks surged 2.2%,
following upbeat third-quarter results from ASML, the
world's largest supplier of computer chip-making equipment.
Meanwhile, safe-haven gold broke through $4,200 an
ounce for the first time to extend its record-breaking run,
helping lift materials stocks 2.3%.
Strong earnings from U.S. banking giants set an encouraging
tone for Canadian lenders, lifting heavyweight financial stocks
0.9%.
"We are seeing the major banks in the U.S. reporting
fantastic numbers, and there is no reason to believe Canadian
banks will not report good numbers next month," said Allan
Small, senior investment advisor at the Allan Small Financial
Group with iA Private Wealth.
Market sentiment also received a boost from Federal Reserve
Chair Jerome Powell's dovish-leaning comments on Tuesday, which
refocused attention on growing expectations for rate cuts.
Traders are now pricing in a quarter-point cut at the Fed's
October 28-29 meeting, followed by another reduction in
December, according to data compiled by LSEG.
"Lower interest rates help markets, period," Small said.
"The reality is that Canadian equities are heavily influenced by
U.S. monetary policy and economic stimulus."
The Bank of Canada will announce its rate decision on
October 29, with markets assigning a 60% probability to a
25-basis-point cut. Those odds have diminished considerably
after Friday's unexpectedly strong employment report.