Canada Stocks: TSX rises as U.S. inflation data lifts hope for more Fed rate cuts

BlackBerry

15/01/2025 16:22

(Updates with market opening prices)
    By Ragini Mathur
       Jan 15 (Reuters) - Canada's main stock index rose on
Wednesday as investors welcomed a U.S. inflation print that
lifted hopes for more rate cuts this year by the Federal
Reserve.
    The Toronto Stock Exchange's S&P/TSX composite index
 .GSPTSE  was up 0.76%, or 186.04 points, at 24774.62.
    Eleven of thirteen sectors were trading higher, with
information technology stocks leading with a 1.9% rise.
    U.S. consumer prices data showed headline inflation in the
world's largest economy rose marginally above forecasts in
December, while the core number came in softer than expected on
an annual basis. 
    The heavyweight financial sector  .SPTTFS  gained over 1%
after strong earnings from some of Wall Street's biggest banks
buoyed sentiment. 
    "The U.S. market is clearly what's driving global markets
today, with slightly easing inflation numbers and strong bank
earnings definitely benefiting the TSX," said Ian Chong,
portfolio manager at First Avenue Investment Counsel.
    "Strong earnings by banks in the U.S. should be positive for
the Canadian banks, especially the ones with U.S. exposure."
    Investors were relieved by the U.S. data as the past week
saw a selloff in bond markets and weakness in global equities
due to concerns that borrowing costs in the U.S. would remain
elevated for longer.
    Canada's benchmark 10-year bond yield  CA10YT=RR  eased to
3.448%, tracking lower U.S. long-term debt yields following the
inflation data.
    At home, data showed Canadian factory sales grew by 0.8% in
November on higher sales of aerospace products and parts, as
well as petroleum and coal products.
    However, wholesale trade fell by 0.2% in November on lower
sales in the motor vehicle and motor vehicle parts and
accessories subsector.
    Separate data showed Canadian home sales fell in December,
but were still 10% higher in the fourth quarter as the country's
central bank eased borrowing costs. 
    Among individual stocks, BlackBerry  BB.TO  led gains in
Toronto with a 4.8% rise. 



 (Reporting by Ragini Mathur in Bengaluru; Editing by Leroy Leo)
 ((Ragini.Mathur@thomsonreuters.com))