TSX Struggles for Direction

The S&P/TSX Composite hovered below the flatline around the 29,280 level on Monday, weighed down by commodity producers as investors awaited policy decisions from North America’s major central banks.

Energy and mining names gave back some of last week’s gains even as oil and gold held higher, while the rate-sensitive technology sector provided the clearest support.

Markets are pricing a 25 basis point cut from the Bank of Canada on Wednesday amid signs of a weakening labour market and softer economic activity, with another reduction expected next quarter.

The Federal Reserve is also fully priced for a 25 basis point cut at its upcoming meeting, with a small chance of a larger move, and traders broadly expect additional easing through year end.