Canada’s main stock index hit a record high on Tuesday after domestic annual inflation eased more than expected in June, boosting hopes for another rate cut by the Bank of Canada.
The TSX Composite Index jumped 166.55 points to pause for lunch Tuesday at 22,918.23.
The Canadian dollar leaned back 0.07 cents to 73.04 cents U.S.
In corporate news, Teck Resources on Monday amended its cash tender offers by increasing the maximum purchase amount to approximately $1.38 billion from $1.25 billion. Shares in Teck retreated 25 cents to $68.14.
Barrick Gold shares rose 0.7% after the Canadian miner’s second-quarter gold output climbed almost 0.9% from a year earlier.
In the economic data Monday, Statistics Canada reported the consumer price index in June rose 2.7% on a year-over-year basis, down from a 2.9% gain in May. On a seasonally adjusted monthly basis, the CPI rose 0.1% in June.
Canada Mortgage and Housing Corporation reported the total monthly seasonally adjusted annual rate (SAAR) of housing starts for all areas in Canada decreased 9% in June (241,672 units) compared to May (264,929),
ON BAYSTREET
The TSX Venture Exchange gained 5.54 points to 600.09.
All but one of the 12 TSX subgroups were positive midday, with gold stronger 3%, information technology climbed 2.4%, and materials chugged ahead 1.6%.
Only energy fell short, down 1%.
ON WALLSTREET
The Dow Jones Industrial Average advanced to new highs on Tuesday, as the market rally continued broadening out beyond big technology names on hopes of forthcoming interest rate cuts.
The 30-stock index vaulted 527.56 points, or 1.3%, to 40,739.28.
The S&P 500 index picked up 17.87 points to 5,649.09.
The NASDAQ faded 11.56 points, off its lows of the morning, to 18,461.01.
Bank of America chugged 5% higher and Morgan Stanley jumped more than 2%, after earnings came in ahead of analyst forecasts. They’re the latest household names to post quarterly financial results as the new reporting season kicks into gear.
AI darling Nvidia and software giant Microsoft each dropped more than 1%.
Retail sales data also came in better than anticipated, which could ease concerns that the consumer was buckling. June sales were unchanged, while economists polled by Dow Jones predicted a decline of 0.4%. Excluding autos, sales rose 0.4%, a larger gain than the 0.1% consensus forecast.
Prices for the 10-year Treasury strengthened, lowering yields to 4.19% from Monday’s 4.23%. Treasury prices and yields move in opposite directions.
Oil prices dipped 96 cents at $80.95 U.S. a barrel.
Gold prices gained $37.50 to $2,466.40
