Canada Stocks: TSX jumps, ends near a 6-week high after soft US inflation data

MTY Food

11/07/2024 21:46

* 
      TSX closes up 0.8%
    

        * 
      U.S. consumer prices unexpectedly fall 0.1%
    

        * 
      Canadian yield falls 10 basis points
    

        * 
      MTY Foods shares rise hit three year high after higher Q2
profit
    

  
 (Updates with closing data)
    By Nikhil Sharma and Divya Rajagopal
       July 11 (Reuters) - 
    Canada's main stock index closed on Thursday at its highest
level in more than a month as cooler-than-expected U.S.
inflation data raised hopes the Federal Reserve would start
cutting interest rates in September.
    The S&P/TSX composite index  .GSPTSE  was up 193.90 points,
or 0.87%, at 22,544.13.
    Real estate stocks  .GSPTTRE  led sector gains with a 2.61%
jump, hitting the highest since April. Healthcare  .GSPTTHC 
shares rose 1.3%. Energy stocks  .SPTTEN  jumped 2.56%, in
tandem with oil prices.  O/R 
        The materials sector  .GSPTTMT  hit its highest in more
than a month before paring gains. Broadly the sectoral indices
closed up in green.
  
        Among individual stocks, MTY Food Group  MTY.TO  shares
closed up 11.12% to top the Toronto Stock Exchange after the
company posted higher second-quarter profit. The stock hit a
three-year high during the session as its quarterly numbers beat
analyst expectations. Among other top gainers were precious
metals miners NovaGold Resources  NG.TO  which closed up by
9.70% and Pan American Silver  PAAS.TO , which ended 6.10%
higher.   
    U.S. consumer prices surprisingly fell 0.1% in June,
boosting the market's expectations for a rate cut in September
to a 90.8% chance from 68.5%.  0#FEDWATCH 
    On Tuesday, Fed Chair Jerome Powell noted in congressional
testimony that inflation was coming down and the economy was no
longer overheated.    
    "I don't think they could have expected much better than
this, but whether or not they're going to cut is going to depend
on some other factors between now and then coming into effect,"
said Michael Sprung, president at Sprung Investment Management.
    Back home, the yield on the Canadian 10-year benchmark
 CA10YT=RR  fell 10 basis points after the inflation report,
mirroring its U.S. counterpart  US10YT=RR . 
    Investors will now focus on the U.S. producer price index
(PPI) data on Friday, alongside the beginning of the earnings
season.

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