Canada Stocks: TSX climbs on broad inclines; US inflation data on tap

BlackBerry

27/06/2024 16:05

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      TSX up 0.4%
    

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      BlackBerry up on Q1 revenue beating estimates
    

  
 (Updated at 10:28 a.m. ET)
    By Nikhil Sharma
       June 27 (Reuters) - Canada's main stock index rose on
Thursday amid broad gains, led by energy shares tracking higher
oil prices, while investors awaited key U.S. inflation data due
this week to get more hints on the Federal Reserve's monetary
policy outlook.
    At 10:28 a.m. ET (14:28 GMT), the Toronto Stock Exchange's
S&P/TSX composite index  .GSPTSE  was up 91.53 points, or 0.42%,
at 21,885.43.
    All sectors except capped communications  .GSPTTTS  were
trading in green, after Canadian yields edged lower as investors
hoped for a July rate cut despite hotter-than-expected inflation
figures earlier this week.
    "Even with the disappointing data, inflation is still below
3% and we do think inflation will work its way down", said
Douglas Porter, chief economist at BMO Capital Markets
    "There's still a possibility they could cut rates in July." 
  
    Money markets see a 38% chance of the Bank of Canada
delivering another rate cut next month after one earlier in
June.  0#BOCWATCH 
    Markets will now shift focus to the U.S. Personal
Consumption Expenditure (PCE) price index data due Friday, which
will provide triggers for recalibrating rate expectations, while
also monitoring the May GDP figures for Canada. 
    The energy sector  .SPTTEN  led sectoral gains with a 1%
jump. Oil prices climbed after supply risks from rising tensions
in the Middle East countered demand fears in the United States
amid a surprise build in stockpiles.  O/R 
    The materials sector  .GSPTTMT  was up 0.3% as copper and
gold prices rose against a weaker dollar.  GOL/   MET/L 
    In individual stocks, BlackBerry  BB.TO  was up 14.8% as the
company beat first-quarter revenue estimates on Wednesday on
robust demand for cybersecurity services in the wake of growing
online threats.
    On Wall Street, all main indexes fell as Micron Technology
 MU.O  dropped after a muted forecast that weighed on some
semiconductor stocks.  .N 

 (Reporting by Nikhil Sharma in Bengaluru; Editing by Vijay
Kishore and Shreya Biswas)
 ((Nikhil.Sharma@thomsonreuters.com;))