Canada Shares Soar on U.S. Fed Cut
TSE 300 reacted forcefully to the Fed's decision to cut interest rates by 50 bais points Wednesday. The move took everyone by surprise and sparked a lot of short covering. The index closed at 8131, or up a whopping 391 points on the day. The close above the 8000 mark has a bullish implication from a technical perspective. Chart watchers now shift their target to 8315 -- a major resistance. Technology as well as financials provided one of the best one-day performance seen in recent sessions. Overall market breadth is encouraging with 214 advancers vs 72 decliners. Volume is heavy.
In London, the Financial Times-Stock Exchange 100 closed up 129.10, or 2.24% to 5890.20. In Germany, the DAX Index ended up 225.76, or 3.80%, to 6161.34. In France, the CAC 40 gained 164.10, or 3.07%, to close at 5505.08.
In Japan, the Nikkei gained 574.70, or 4.40%, to close at 13641.79. In Hong Kong, the Hang Seng index ended up 366.35, or 2.91%, to close at 12972.80.