Canada Stocks: TSX rises as US data firms Fed rate cut bets

Finning International

13/11/2024 16:08

(Updated at 10:11 a.m. ET/ 1511 GMT)
    By Nikhil Sharma
       Nov 13 (Reuters) - Canada's main stock index rose
slightly on Wednesday after a rally in the previous session, as
U.S. inflation data reinforced expectations for a Federal
Reserve interest-rate cut next month.
    The S&P/TSX composite index  .GSPTSE  was up 15.64 points,
or 0.06%, at 24,983.65, hovering near a record high it hit on
Tuesday.
    Markets focused on data from the U.S. consumer price index
(CPI) that rose 0.2% for the fourth straight month. In the 12
months through October, the CPI advanced 2.6% after climbing
2.4% in September.
    Traders see an 82.8% likelihood of a 25-basis-point rate cut
at the Fed's December policy meeting, up from 63% bets seen
earlier in the day.  0#FEDWATCH 
    However, global investors expect President-elect Donald
Trump's proposed economic policies to stoke inflation,
potentially impeding the Fed's path to lower interest rates.
    Wall Street's main indexes also inched up on Wednesday after
the inflation data.  .N 
    "I think we're mostly following the U.S. market today," said
Colin Cieszynski, chief market strategist at SIA Wealth
Management. 
    "Things just seem to be kind of settling out after all the
humongous moves we've seen over the last week."
    Trump's reelection sparked a global stock market rally last
week, on the hopes that his proposed tax cut policies and looser
regulations could benefit corporations.
    Canada's technology sector  .SPTTTK  rose 1.2%, after it hit
a record high in the previous session following Shopify's
 SHOP.TO  strong quarterly results.
    The energy sector  .SPTTEN  became the biggest decliner,
sliding 0.5%, after oil prices fell to near a two-week low on a
gloomy global demand outlook.  O/R 
    At least nine sectors nursed losses on the index.
    Among individual stocks, Loblaw Companies'  L.TO  shares
fell 1% after the retailer missed third-quarter revenue
estimates, hurt by a slowdown in demand.
    Finning International  FTT.TO  dropped 11% to the bottom of
the index after the Caterpillar dealer also missed its
third-quarter revenue estimates.

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