Toronto stocks rise as Canada cenbank cuts interest rates
TSX up 0.3%
The Bank of Canada cuts policy rates by 25 basis points
US job openings fall to three-and-a-half-year low in July
Updated at 10:53 a.m. ET/ 1453 GMT
By Nikhil Sharma
Sept 4 (Reuters) -Canada's main stock index rose slightly on Wednesday on upbeat sentiment followingthe Bank of Canada's decision to trim its monetary policy rate for the third time this year.
At 10:53 a.m. ET (14:53 GMT), the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was up 70.62 points, or 0.31%, at 23,113.07.
The Bank of Canada cut its key policy rate by 25 basis points to 4.25%, but raised concerns that weaker-than-expected growth could meaninflation slowing belowthe central bank's 2% target.
A steep decline in Canada's annual inflation rate and a weak labor market, coupled with lackluster economic growth, built a stronger case for the Canadian central bank to loosen its credit conditions.
This process of lowering rates isn't over, said Brian Madden, chief investment officer at First Avenue Investment Counsel, adding that the central bank is "very mindful that weakness is starting to emerge in the labor market."
At least ten sectorson the TSX logged gains, led by the healthcare sector, which rose 1.44%.Bausch Health Companies BHC.TO rallied 2.3%, supporting gains in the index.
The rate-sensitive real estate .GSPTTRE sector gained 1.4%,while capped communications .GSPTTTS sector added 1%.
The heavyweight energy sector .SPTTEN declined 0.6%as oil prices edged down after falling nearly 5% in the previous session. O/R
Canada's 2-year benchmark yield CA2YT=RR fell 6 basis points after the rate decision.
Meanwhile, in the United States, the Federal Reserve is also expected to begin cutting interest rates during its next policy meeting on Sept. 18.
Job openings in the U.S. fell to a three-and-a-half-year low in July, suggesting a slowdown in the labor market. On the other hand, U.S. factory orders rose by a stronger-than-expected 5% in July.
Among individual stocks, Kits Eyecare's KITS.TO shares rose 1% after the eyecare provider revised its third-quarter revenue guidance upwards.
Reporting by Nikhil Sharma in Bengaluru; Editing by Shreya Biswas and Janane Venkatraman
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