Toronto stocks jump on optimism around US rate cut
TSX up 1.2%
Healthcare and technology lead the sectoral gains
Methanex to acquire OCI's methanol business, shares fall
Updated at 10:11 a.m. ET/ 1411 GMT
By Nikhil Sharma
Sept 9 (Reuters) -Canada's main stock index rose over 1% on Monday in a broader rally led by technology and healthcare stocks, as investors looked forward to the U.S. Federal Reserve initiating a rate cut cycle in September.
At 10:11 a.m. ET (14:11 GMT), the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was up 271.77 points, or 1.19%, at 23,053.2 and was set to rebound after it fell to a more than three-week low on Friday.
All major sectors on TSX logged gains led by the information technology sector .SPTTTK that rose 2.1%, supported by Celestica CLS.TO rallying 6.4%, and healthcare .SPTTTK sector advancing 2% as it benefited from a 5.5% jump in cannabis firm Tilray Brands TLRY.TO.
The Fed is widely expected to offer a 25-basis points reduction at its next policy meeting on September 18 with investors also expecting a slim 27% chance of 50 bps cut. 0#FEDWATCH
"There're definitely some voices out there that want 50 (bps cut). If we're cutting 50 because we think the soft landing is in full effect and we're trying to catch up with inflation, then maybe the market starts rolling again," said Nicolas Katsiyianis, head of research at Eight Capital.
Among a series of data expected later in the week, the U.S. consumer prices data on Wednesday will be in focus as it could further highlight the commencement of the interest rate-cutting cycle.
Data on Friday showed that the U.S. labor market was cooling but not at a worrying pace, building a case for a soft landing for the American economy.
The U.S. presidential debate between Democrat Harris and Republican Trump will make headlines as the political rivals brace themselves for the upcoming elections in November.
In corporate news, Methanex MX.TO slides 5% after the methanol producer agreed to buy Dutch green fuel maker OCI Global's OCI.AS methanol business for $2.05 billion.
Reporting by Nikhil Sharma in Bengaluru; Editing by Shreya Biswas and Vijay Kishore
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