Canada's main stock index opened substantially higher on Thursday led by technology and industrial stocks, after soft U.S. inflation data lifted expectations of smaller interest rate hikes by the Federal Reserve.
The TSX Composite shot higher 582.48 points to begin Thursday at 19,355.40.
The Canadian dollar regained 0.9 cents to 74.82 cents U.S.
Canadian Tire reported a near 20% fall in quarterly profit as inflation-weary consumers cut back on high-margin discretionary purchases such as sports equipment and auto parts.
Shares in Canadian Tire moved sharply downward, $4.38, or 2.9%,
ON BAYSTREET
The TSX Venture Exchange recovered 14.82 points, or 2.6%, to 592.15
All 12 TSX subgroups were positive, led by information technology, spiking 6.6%, health-care haler by 5.3%, and materials, stronger 4.4%.
ON WALLSTREET
Stocks surged Thursday after October’s reading of consumer prices raised hopes that inflation has peaked.
The Dow Jones Industrials more than made up for Wednesday’s losses, hiking 785.26 points, or 2.4%, to 33,299.20.
The S&P 500 rocketed 150.68 points, or 4%, to 3,899.25.
The NASDAQ vaulted 582.48 points, or 5.6%, to 10,935.65.
The consumer price index, a broad-based measure of goods and services costs, rose just 0.4% for the month and 7.7% from a year ago. That was its lowest annual increase since January. Economists were expecting increases of 0.6% and 7.9%, according to Dow Jones. Excluding volatile food and energy costs, so-called core CPI increased 0.3% for the month and 6.3% on an annual basis, also less than expected.
Tech shares that have been the hardest hit this year as inflation and rates surged led the gains in early trading. Nvidia and Tesla soared 7.5% and 5.7%, respectively. Salesforce jumped 7%. Apple gained 5%.
Semiconductor stocks got a boost, with shares of Lam Research and Applied Materials each up more than 5%. KLA also popped 3.7%.
Prices for the 10-year Treasury leaped, lowering yields to 3.84% from Wednesday’s 4.09%. Treasury prices and yields move in opposite directions.
Oil prices doffed 20 cents to $85.63 U.S. a barrel.
Gold prices jumped $37.70 to $1,751.40 U.S. an ounce.
