Canada’s main stock index opened lower on Thursday as a higher-than-expected U.S. inflation data kept the Federal Reserve on course for a quarter-point-reduction in November, while TD Bank dropped after reports of penalty on the lender.
The TSX Composite Index ditched 37.92 points to open Thursday at 24,186.98.
The Canadian dollar shed 0.19 cents to 72.74 cents U.S.
In corporate news, TD Bank is expected to pay about $3 billion in penalties as part of a settlement with U.S. regulators and prosecutors, the Wall Street Journal reported. Shares in TD closed Wednesday at $87.11.
ON BAYSTREET
The TSX Venture Exchange inched forward 1.49 points to 592.33.
Eight of the 12 TSX subgroups were lower in the first hour, with energy down 0.7%, communications off 0.5%, and health-care sliding 0.4%.
The four gainers were led by gold, up 1.2%, energy, up 0.9%, and materials, better by 0.7%.
ON WALLSTREET
Stocks declined Thursday, with the S&P 500 and Dow Jones Industrial Average falling from records, as economic data pointed to stubborn inflation and an uptick in unemployment.
The blue-chip index lost 64.18 points to 42,447.82.
The much-broader index settled 18.41 points to 5,773.63.
The NASDAQ Composite dumped 82.41 points to 18,209.20.
Among companies, disappointing guidance from Delta Air Lines weighed on the broader airline industry. Delta, JetBlue and American Airlines slumped 2%, while United Airlines declined 1%.
The September consumer price index rose more than expected last month, increasing 0.2% on a monthly basis and bringing the annual inflation rate to 2.4% from the previous year. That came in ahead of the 0.1% monthly gain and 2.3% year-over-year rate expected by analysts polled by Dow Jones. The year-over-year number is the lowest since February 2021.
The data comes as concerns mount that the central bank may slow the pace of future cuts, and ahead of the Federal Reserve’s first policy meeting after September’s super-sized cut. Fed funds futures trading data suggests a 87% likelihood of a quarter-point cut
Prices for the 10-year Treasury skidded slightly, raising yields 4.08% from Wednesday’s 4.07%. Treasury prices and yields move in opposite directions.
Oil prices gained $1.14 to $74.38 U.S. a barrel.
Gold prices surged $8.60 to $2,634.60 U.S. an ounce
