04:23 PM EDT, 05/16/2024 (MT Newswires) -- The Toronto Stock Exchange's S&P/TSX Composite Index closed up 15.07 points on Thursday to close at 22,299.83, remaining rangebound over the week's first four sessions on uncertainty over the timing and pace of expected interest-rate cuts from central banks in Canada and the United States

Among sectors, Healthcare was up 1.3%, followed by Utilities, up 0.4%, while Telecoms rose 0.3%.

Battery Metals was the biggest decliner, down -1.3%.

West Texas Intermediate (WTI) crude oil closed higher on Thursday on firming demand expectations following a day-prior report showing a larger than expected drop in U.S. oil inventories and revived hopes for lower U.S. interest rates. WTI crude for June delivery closed up US$0.60 to settle at US$79.23 per barrel, while July Brent crude, the global benchmark closed up US$0.52 to US$83.27.

Gold prices eased off a three-week high mid-afternoon on Thursday as the dollar and yields rebounded after a day-prior drop as a report showed the U.S. consumer price index eased in April. Gold for June delivery was last seen down US$12.30 to US$2,382.60 per ounce.

Despite the exchange's funk this week, BMO senior economist Robert Kavcic said he expects a revival in Canadian stocks.

"Canadian equities have been lagging for much of the past year-and-a-half, but if you've checked in recently, you'll notice the TSX has begun to break out of a long funk. The index peaked just over 22,000 in April 2022, and it has finally pushed to new highs in recent trading. Contrast that to the S&P 500, which has not only outperformed from the late-2022 lows, but hit new highs earlier. BMO's strategy team has become more bullish on Canadian equities, and we've similarly argued that relative valuations have become very attractive by historical standards," he wrote.

Desjardins today in an Economic & Financial Outlook entitled "Monetary Policies May Start Diverging Worldwide" said it believes the Federal Reserve will wait until the presidential election campaign is over before announcing a first rate cut in November, followed by another in December. Desjardins noted the Bank of Canada doesn't need to follow the Fed's lead, but said "it probably won't take too much of a heard start." It expects the BoC to lower interest rates four times in 2024, but added the decision is "hardly straightforward" for June.

"On one hand, inflation has slowed and other indicators point to some weakness in Canada's economy, but on the other, job creation was rather robust."

The Markets, Desjardins noted, aren't really pricing in a June rate cut, which is limiting the Canadian dollar's slide for now. But if its predictions are accurate, it said the loonie should depreciate further and could approach CA$1.40/&US$ over the summer.

"What's more," it added, "we don't expect much support from commodity prices in the very short term. Investor risk appetite could also pull back again over the coming months. Many stock valuations remain high, so we don't anticipate any major gains from the stock market before the end of the year."

In terms of economic news, focus was on fresh data out of the United States; TD Economics noted housing starts rose, while permits fell there in April.

"With the timing of Federal Reserve rate cuts being pushed back into the second half of the year, higher interest rates are expected to continue to weigh on homebuilding over the coming months," it said.

Elsewhere, CIBC noted U.S. industrial production (IP) growth was flat in April, coming one notch below expectations of a 0.1% increase. The prior month was revised down three notches to a 0.1% gain.

"With the Fed likely to hold rates somewhat longer than many expected, spillovers to the global economy and to global trade will be somewhat larger and dent expectations of a solid future demand, keeping a lid on production," the bank said.