TSX Rises 0.63% to 36,171.49 as Investors Await BoC and Fed Rate Decisions

Canadian stocks extended gains Tuesday, with the S&P/TSX Composite Index closing up 227.33 points, or 0.63%, at 36,171.49, as investors positioned ahead of Bank of Canada and U.S. Federal Reserve rate announcements Wednesday. The materials sector led six advancing sectors, gaining 3.34%, while energy fell 2.59%. Perpetua Resources rose 10.77% and Lithium Americas gained 8.19%; Cenovus Energy dropped 4.43% and Suncor Energy fell 3.98%. The BoC is widely expected to consider tightening for the first time since June 2023, with its policy rate at 2.25% after seven consecutive holds. Canadian inflation rose to 3.10% in September from 3.00% in August, and the economy shed 68,000 jobs. Higher energy prices are complicating the policy response, as Canada is a major net-energy exporter. Traders expect the Fed to keep rates unchanged. Investors are also monitoring diplomatic efforts to ease U.S.-Iran tensions, with Qatar brokering talks.