Canada Stocks: TSX slips after unexpected rise in Canadian inflation
25/06/2024 15:43
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TSX down 0.5%
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Canada CPI rises unexpectedly in May
(Updated at 10:17 a.m. ET)
By Nikhil Sharma
June 25 (Reuters) - Canada's main stock index fell on
Tuesday after a surprisingly stronger-than-expected inflation
report clouded hopes for interest rate cuts from the Bank of
Canada in July.
At 10:17 a.m. ET (1417 GMT), the Toronto Stock Exchange's
S&P/TSX composite index .GSPTSE was down 0.5% at 21,733.48.
Canada's consumer prices index (CPI) numbers unexpectedly
increased in May, while other key core inflation metrics were up
for the first time in five months.
Money markets slashed their bets for a rate cut from the
central bank in July at around 54%, down from 65% before the
numbers were released. 0#BOCWATCH
"It is a disappointing report and what it does for the Bank
of Canada is reducing the chances of a July cut," said Douglas
Porter, chief economist at BMO Capital Markets. "But I don't
think it rules out rate cuts outright because we will get
another inflation report before they decide on rates in July."
Leading the sectoral losses were materials shares .GSPTTMT
falling 1% as gold prices XAU= dropped ahead of U.S. inflation
data due later this week. Copper prices also slipped against a
firm dollar due to weak demand in China and soaring inventories.
GOL/ MET/L
Dip in crude prices LCOc1 CLc1 pushed the energy sector
.SPTTEN down 0.7%, as it faced pressure from a stronger
dollar. O/R
On Wall Street, the Nasdaq .IXIC and the S&P 500 .SPX
rose as chip designer Nvidia and some other AI-linked stocks
rose after bruising selloffs in previous sessions. .N
Back home, Brookfield BAM.TO slipped 0.7% after the asset
management firm agreed to acquire a majority stake in the French
renewable power producer Neoen SA NEOEN.PA .
(Reporting by Nikhil Sharma in Bengaluru; Editing by Vijay
Kishore)
((Nikhil.Sharma@thomsonreuters.com;))