FX.co ★ TSX Trades Near Flat After Fed Decision

The TSX hovered near unchanged around 35,500 on Wednesday after the US Federal Reserve delivered a widely anticipated 25 bps rate hike, lifting its benchmark range to 3.75%-4%. Financials outperformed, with major banks mostly higher and shares of CIBC and National Bank each gaining about 1%.

Oil prices and sovereign bond yields eased, reversing part of their recent global rally that had pressured equities amid concerns that central banks will keep policy tighter for longer to curb inflation fueled by elevated energy costs. Gold prices slipped modestly following the FOMC announcement. The mining sector was broadly weaker, with WPM surrendering earlier gains to close more than 1.5% lower.

In other developments, European Commission President Ursula von der Leyen said the EU is opening the door for Canada to become its first “associate member,” expanding cooperation in areas such as manufacturing, artificial intelligence, critical minerals, and energy. The move comes amid rising trade tensions between the US and Canada after trade negotiations broke down last month.