Canada’s main stock index jumped on Tuesday as cooler-than-anticipated U.S. inflation data bolstered investor sentiment, lifting rate-sensitive stocks, while a rise in prices of most commodities boosted energy and materials stocks.
The TSX Composite galloped 240.14 points, or 1.2%, to start out Tuesday at 19,949.29.
The Canadian dollar zoomed 0.31 cents at 72.76 cents U.S.
In corporate news, a Glencore-led consortium agreed to buy Teck Resources’ steel-making coal unit for $9 billion, making it one of the mining sector’s most significant deals in years. Teck shares hiked 96 cents, or 1.9%, to $51.27.
The TSX Venture Exchange gained 4.3 points to 515.41.
All 12 TSX subgroups gained ground in the first hour, led by real-estate, scaling 3.2% higher, while gold, shooting 2.5% higher, and materials stronger by 2.4%.
Stocks surged Tuesday as investors cheered the latest U.S. consumer price index report.
The Dow Jones Industrials skyrocketed 465.97 points, or 1.4%, to 34,803.84.
The S&P 50 index recovered 78.64 points, or 1.8%, to 4,489.86.
The NASDAQ soared 289.43 points, or 2.1%, to 14,057.17.
Shares of Home Depot, which were up nearly 6% on better-than-expected third-quarter earnings, led the gains for the Dow. Enphase Energies, Boston Properties and SolarEdge Technologies — each up more than 9% — led the S&P higher.
CPI was flat last month, while economists polled by Dow Jones expected a gain of 0.1% month over month. So-called core CPI, which strips out food and energy prices, was also lower than expected and the slowest in two years. This instilled optimism into the market that the Federal Reserve was finally making headway in its fight against inflation.
Following the report, fed-funds futures showed traders had removed any chance of a hike in December, from 14% odds prior.
Prices for the 10-year Treasury leaped, lowering yields to 4.46% from Monday’s 4.63%. Treasury prices and yields move in opposite directions.
Oil prices perked $1.05 to $79.31 U.S. a barrel.
Gold prices brightened $21.10 to $1,971.30.