TSX Trades Near Flat After Fed Decision

The TSX traded near flat around 35,500 on Wednesday following the US Fed’s widely expected decision to raise its benchmark rate by 25 bps to a 3.75%-4% range. Major banks were mostly higher, with CIBC and National Bank up about 1%. Oil prices and sovereign yields eased after their global rally in recent weeks weighed on equity markets, as investors fear central banks will keep monetary policy tighter for longer to contain inflationary pressures from soaring energy prices. Gold prices edged lower following the FOMC decision. Miners traded mostly lower, with WPM erasing earlier gains to fall more than 1.5%. Elsewhere, European Commission President von der Leyen said the EU is opening the door for Canada to become its first “associate member,” with cooperation across sectors including manufacturing, AI, critical minerals and energy. This follows an escalation in the US-Canada trade war after trade talks collapsed last month.