Bay Street Taking Central Bank News In Stride -- Canadian Commentary


(RTTNews.com) - Canadian stocks may rise Thursday amid higher commodity prices and news that the European Central Bank plans to close its bond-buying program by year's end.

With the global economy picking up and Italy's political crisis on the backburner, the said it will keep interest rates at present levels at least through summer 2019.

The Federal Reserve raised its key interest rate by a quarter point to 2%, as expected, but signalled four rate hikes for 2018.

Markets have taken the somewhat hawkish central bank news in stride over the past 24 hours.

On the corporate front, Canadian National Railway Co (CN.TO) plans to invest more than C$200 million in Quebec this year.

Tour operator Transat AT Inc. (TRZ.TO) reported a profit in its latest quarter compared with a loss a year ago.

Gold was up $10 at $1310/oz, while crude oil rebounded to $67/bl.

In economic news, Canada's new house price index was unchanged in April.

Meanwhile, national net worth, the sum of national wealth and Canada's net foreign asset position, increased 1.6% to $11,375.9 billion at the end of the first quarter.


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