On Wednesday I had thought the TSX Composite Index should have moved higher. It did until the Bank of Canada announced another interest rate hike, the second in two months. The rate increase caught analysts by surprise as they expected no rate increase until the next central bank meeting in October. With interest rates now at 1% from the central bank, banks began raising their loan rates. TD Bank jumped to 4.89% for a 5 year fixed mortgage with 6 year jumping to 5.14%.
The Canadian dollar jumped to its highest level in since June 2015, reaching 81.54 cents US. Investors worried about the rising Canadian dollar as Canada is primarily an export driven economy and a higher dollar means less competitive pricing.
By the close the TSX was down 30.32 points to end the day at 15,059.83. This was the third straight day of losses.
Here is the Market Breadth Indicator outlook for Thursday Sep 7 2017 after the close of trading on Wed Sep 6 2017.
The TSX Composite Index Market Breadth Outlook for Tomorrow is for FullyInformed Members.
TSX Composite Index – Market Breadth Outlook For Sep 7 2017
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