TSX Rises as Consumer Stocks Offset Energy Weakness Amid Growing Fed Rate-Cut Hopes

Canada’s main stock index edged higher on Tuesday in a volatile session, as gains in consumer-linked shares helped offset weakness in the energy sector. Investors also assessed U.S. economic data against rising expectations of a Federal Reserve rate cut.

At 10:21 a.m. ET, Toronto’s S&P/TSX Composite Index was up 0.2% at 30,659.44. The index had climbed to a 12-day high in the previous session after dovish remarks from Federal Open Market Committee voters John Williams and Christopher Waller.

“Markets are again reassessing what could happen at the December Fed meeting, where another rate cut looks like the most likely outcome,” said Angelo Kourkafas, investment strategist at Edward Jones. According to CME’s FedWatch tool, traders now see roughly an 82% chance of a quarter-point cut in December—up sharply from less than 50% a week earlier.

On the TSX, consumer staples and consumer discretionary stocks were the best performers, rising 2.3% and 1.5%, respectively.

Convenience-store operator Alimentation Couche-Tard jumped 4.5% after beating profit expectations for its second quarter.

Meanwhile, U.S. data showed retail sales rose at a slower-than-expected pace in October following strong growth in September.

“Overall, I don’t think the data changes the broader narrative,” Kourkafas said. “The consumer remains resilient, and we haven’t seen the numbers meaningfully shift expectations for rate cuts.”

Energy shares dropped 1.8% as oil prices weakened on concerns about oversupply next year.

In trade developments, The Globe and Mail reported Monday that Canada and India are close to finalizing a uranium export deal worth nearly US$2.8 billion.