TSX moves higher after 4 days of losses
Traders are watching the Fed on interest rates instead of worrying about China
North American markets moved solidly higher on Tuesday, ahead of the Fed meeting that will set interest rate policy.
The Canadian dollar edged higher to 75.49 cents US.
New York's Dow industrial index rose 229 points to 16,599 amid news the U.S. consumer is continuing to stimulate economic growth.
Continued strength in retail spending is contributing to a strengthening U.S. economy and will be among the data weighed by the Fed as it decides whether to start raising interest rates.
But on the down side, U.S. manufacturing output declined by 0.5 per cent in August, the biggest decline since January 2014.
Watching the Fed instead of China
Much of the decline was in the auto sector, though production of computers, airplanes and furniture also fell. A stronger U.S. dollar and weak global growth are eating opportunities for export of U.S. goods.
Opinions are split among analysts as to whether the Fed will announce a plan to start raising rates gradually when it closes its meeting on Thursday.
The focus this week on the Fed has distracted traders from concern about China, where a falling market and signs of slow growth have been market movers for weeks.
What about China?
"There has been a lot of bearishness in markets lately. China and emerging markets have been the big worry," said Neil Massa, a senior equity trader at John Hancock Asset Management. "So the question is: Can the Fed ignore what's happening in the rest of the world?"
China's stock market index fell 3.5 per cent on Tuesday to 3,005 and there was fresh pessimism after reports that the president of Citic Securities, China's largest brokerage, was among those investigated in China's crackdown on those they say have manipulated markets.
But European stocks were higher, despite falling prices in China and Hong Kong.
In Toronto and New York, energy stocks moved up more quickly than the rest of the market after oil prices recovered slightly.
West Texas Intermediate crude was up 59 cents in the afternoon at $44.59 US a barrel.