Canadian Stocks Inch Higher Ahead Of Interest Rate Announcements By BoC, Fed

(RTTNews) - Canadian stocks posted marginal gains on Tuesday as investors brace for interest rate and monetary policy announcements by the central banks of both Canada and the U.S. While investors predict a rate lowering in the U.S., rates are expected to remain unchanged in Canada.

After opening a little lower than yesterday's close, the benchmark S&P/TSX Composite Index soon gained ground to trade positive throughout the rest of the session before settling at 31,244.37, up by 74.40 points (or 0.24%).

Four of the 11 sectors posted gains today, with the materials sector leading the pack.

Tomorrow, the Bank of Canada will announce its interest rate decision.

Traders are awaiting the press conference with Governor Tiff Macklem and Senior Deputy Governor Carolyn Rogers following the interest rate announcement wherein more insights on the central bank's analysis of the national economy and its rate path for 2026 can be gathered.

The central bank has delivered nine cuts over the past 17 months. In its most recent meeting on October 29, the BoC pruned the rate by 25 basis points to 2.25%.

A Reuters survey of 33 economists revealed a consensus that the overnight rate would stay at 2.25% in tomorrow's BoC announcement, while a majority of them see no change in the rates throughout 2026.

On the economic front, no significant data prints were scheduled for today.

Recent data releases reflected steady inflation and a stronger-than-expected labor market, which which has dampened expectations for further cuts this year.

The Canadian economy has been suffering heavily after U.S. President Donald Trump hit Canada with 35% tariffs on its exports to the U.S.

On the tariff front, Trump threw another shocker to Canada.

Yesterday, while announcing $12 billion to support American farmers, Trump remarked that agricultural imports were posing a challenge to domestic producers.

To prevent agri-product dumping and save domestic farmers, Trump stated that he may consider slapping fresh levies on agricultural imports flooding the U.S. - mainly rice from India and fertilizers from Canada.

Even though no major progress has been seen so far, the trade talks between officials of the U.S. and India are underway.

However, with Canada, concerns have increased with this latest announcement as Trump has already halted all trade talks with the nation.

Canadian Prime Minister Mark Carney's outreach to the U.S. to get a favorable bilateral trade deal has not met with remarkable success.

So far, Canadian business houses have been able to absorb a lot of tariff shocks by circumventing the goods under the Canada-United States-Mexico Agreement as much as possible.

That tripartite deal is up for renewal next year.

Concerns are rising with recent reports indicating that Trump may walk out of the free-trade pact or amend certain clauses to favor the U.S.

On the business front, earnings result of Groupe Dynamite has beat market estimates. The company's bottom line totaled C$81.505 million (or C$0.71 per share). The company's revenue for the period rose 40.3% to C$362.970 million from C$258.772 million last year. The Board has declared a one-time special cash dividend of C$2.30 per share which will be paid on December 29 to shareholders of record as of December 19.

Major sectors that gained in today's trading were Materials (1.97%), Healthcare (1.23%), Financials (0.42%), and IT (0.26%).

Among the individual stocks, Pan American Silver Corp (11.07%), Aya Gold and Silver Inc (7.47%), First Majestic Silver Corp (7.18%), Curaleaf Holdings Inc (6.21%), and Sprott Inc (2.97%) were the prominent gainers.

Major sectors that lost in today's trading were Communication Services (0.44%), Consumer Discretionary (0.76%), Industrials (0.93%), and Energy (1.14%).

Among the individual stocks, Paramount Resources Ltd (4.29%), Advantage Oil & Gas Ltd (4.04%), Kelt Exploration Ltd (3.47%), Bombardier Inc (4.17%), and Gildan Activewear Inc (1.32%) were the notable losers.