Canada Stocks: TSX hits one-month high as domestic inflation eases

Shockwave Medical

17/01/2023 16:02

(Adds comments, details; updates prices)

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      Barrick Gold reports highest quarterly gold output
    

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      Bombardier rises to 3-1/2 year high on forecast raise
    

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      Domestic inflation fell to annual rate of 6.3%
    

  
    By Shristi  Achar A and Johann M  Cherian
       Jan 17 (Reuters) - Canada's main stock index rose on
Tuesday, eying gains for the eighth straight session after data
showed that domestic inflation eased in December, while the
industrial sector was boosted by Bombardier as the planemaker
raised its outlook.
    At 10:18 a.m. ET (1518 GMT), the Toronto Stock Exchange's
S&P/TSX composite index  .GSPTSE  was up 77.46 points, or 0.38%,
at 20,467.79 - its highest level in over a month.
    Canada's annual inflation rate further eased to 6.3% in
December, slightly lower than expected, mainly due to slower
yearly growth in gas prices.
    "We're way past peak inflation and starting to get closer to
a more reasonable inflation number ... giving more comfort to
the fact that central banks can slow down their interest rate
cycle," said Sadiq Adatia, chief investment officer at BMO Asset
Management.
    The industrial sector  .GSPTTIN  rose 1.1% after Bombardier
Inc's shares  BBDb.TO  rose 4.8% as the company raised its
full-year forecast on the back of robust demand for private
planes.
    The energy sector  .SPTTEN  edged 0.8% higher as oil prices
rose after Chinese economic data beat expectations, with hopes
of a boost in fuel demand from the top-consumer.  O/R 
    The TSX had lost 8.6% in 2022, with markets roiled by
consistent rate hikes by the Bank of Canada to battle
decades-high inflation. The bank had raised its benchmark
interest rate at a record pace of 400 basis points in nine
months in 2022 to 4.25%. 
    The BoC is now expected to hike rates by 25 basis points
next week.  0#BOCWATCH 
    Gold miner Barrick Gold  ABX.TO  said its fourth-quarter
production rose 13.4% sequentially. However, its shares fell
2.1%, tracking the broader sector.
    Canada's gold mining sector  .SPTTGD  was a drag, down 1.7%
as spot gold prices  XAU=  fell against the U.S. dollar.  GOL/ 
    Neovasc  NVCN.TO  jumped 33.2% after Shockwave Medical
 SWAV.O  said it would buy Neovasc for $27.25 per share in an
all-cash deal for $73.78 million.
 (Reporting by Shristi Achar A and Johann M Cherian in
Bengaluru; Editing by Maju Samuel)
 ((Shristi.AcharA@thomsonreuters.com;))