The Toronto Stock Exchange joined U.S. markets in gaining ground Tuesday morning as the Federal Reserve began a two-day meeting widely expected to result in more money being injected into the economy.
Minutes after the open, the S&P/TSX composite index was up 40.67 points, or 0.32%, to 12,705.48.
Fed board members, led by chairman Ben Bernanke, began meetings Tuesday that will result in an announcement on monetary policy on Wednesday afternoon. No movement is expected on its key interest rate range of between zero and 0.25%. However, a major purchase of assets such as bonds, which would essentially inject more cash into the struggling U.S. economy, is what’s expected.
Economists anticipate the value of this initiative to be about $500 billion US.
As well, U.S. midterm elections were underway Tuesday. Voters are expected to return more legislative power the Republicans, a group perceived as more pro-business than the Democrats.
On U.S. stock markets Tuesday, the Dow Jones industrial average was up 84.76 points, or 0.76%, to 11,209.38 shortly after trading started. The Nasdaq composite index was ahead 21.37 points, or 0.85%, to 2,526.21.
On the commodities market, crude oil was up 73 cents to US$83.68 a barrel in New York. Gold gained US$5.10 to US$1,355.70 an ounce.
The Canadian dollar was up 60 basis points to US99.02 cents.
In Europe, the United Kingdom’s FTSE index was up 63.6 points, or 1.12%, to 5,758.22. France’s CAC index gained 27.67 points, or 0.72%, to 3,868.78. The DAX in Germany rose 47.47 points, or 0.72%, to 6,652.33.
Asian stocks were mixed after central banks in Australia and India both raised interest rates. Japan’s Nikkei index was up 5.26 points, or 0.06%, to 9,159.98. In Hong Kong, the Hang Seng index rose 18.48 points, or 0.08%, to 23,671.42. Mainland China’s Shanghai composite was down 8.59 points, or 0.28%, to 3,045.43.
On Tuesday, the S&P/TSX fell 11.43 points, or 0.09% to 12,664.81. In the U.S., the Dow Jones was up 6.13 points, or 0.06%, 11,124.62, while the Nasdaq fell 2.57 points, or 0.1%, to 2,504.84.
