Canadian Stocks Show Modest Move Back To The Upside

(RTTNews) - Following the weakness seen in the previous session, Canadian stocks showed a modest move back to the upside during trading on Wednesday.

The benchmark S&P/TSX Composite Index briefly pulled back below the unchanged line after an early advance but bounced back into positive territory as the day progressed. The index closed up 54.88 points or 0.2 percent at 27,878.76.

Gold stocks helped lead the way higher, with the S&P/TSX Global Gold Index surging by 2.7 percent as the price of the precious regained ground after trending lower over the past few sessions.

A notable increase by the price of crude oil also contributed to some strength among energy stocks, while consumer discretionary stocks showed a significant move to the downside.

Traders seemed reluctant to make more significant moves ahead of Federal Reserve Chair Jerome Powell's highly anticipated speech at the Jackson Hole Economic Symposium on Friday.

Powell's remarks could have a significant impact on the outlook for interest rates ahead of the Fed's next monetary policy meeting in September.

CME Group's FedWatch Tool is currently indicating an 82.9 percent chance the Fed will lower rates by a quarter point next month.