By Gavin Adamson

(November 15 -17:30 ET) – Judging by the movement in the financial services sector on the TSE, Canadian investors are betting on a quarter-point interest rate hike from the U.S. Federal Reserve tomorrow.

The TSE gained 74 points to close at 7600.20, led by stock price jumps in some of the major banks. TD bank gained C$1.45 to $36.70. TD bank’s discount brokerage subsidiary, TD Waterhouse, added C$3.75. CIBC also took on $1.35, to 35.70. Scotiabank added 70 cents to close at $33.75. Gordon Thiessen, governor of the Bank of Canada, has previously said the Canadian central bank would probably have to move interests rates if the Fed moves U.S. rates up again.

The catch-all subsector – industrials – also put on a good show. QLT Phototherapeutics jumped by $7.20, to $57.70, and Research In Motion swelled by $8.40 to $69.50.

The ME was moved lockstep with the TSE, gaining 61.98 to 3,970.70. The ASE put on 5.76, to 2957.38. The VSE dropped almost two points.

In the U.S. it was a different, cautious story. CBS Marketwatch reports a 60% chance of an interest rate hike based on the sales of bond futures. In any case, markets were slow, and inched down. The Dow dropped 8.57 to 10, 760.75. The S&P slipped by 1.67 to 1,394.39. Nasdaq closed down by 1.61 to 3219.54.

The U.S. Fed announces its decision at 14:00 ET tomorrow. Statistics Canada releases the report on the consumer price index on Friday – a key report in the Bank of Canada interest rate deliberations.