FX.co ★ TSX Set for Fresh Record Highs

Canada's S&P/TSX Composite Index experienced an upward movement of about 0.3%, surpassing the 28,000 threshold for the first time on Wednesday and achieving a new record high. This rise was fueled by softer U.S. inflation data bolstering expectations for an interest rate cut by the Federal Reserve in September. The mild Consumer Price Index (CPI) reading for July indicated that tariffs have exerted only a limited impact on price levels. This eased concerns about a potential resurgence in inflation and strengthened the argument for policy easing, particularly after some members of the Federal Open Market Committee (FOMC) suggested that tariff risks had delayed the Fed's cycle of loosening monetary policy. The financial sector led the gains with RBC, TD Bank, Brookfield, and BMO seeing increases between 0.5% and 1.2%, whereas commodity producers had mixed outcomes.