Equities in Toronto opened with triple-digit gains on Thursday, after the index logged a record closing high in the previous session and assessed a broadly in-line U.S. inflation reading.
The TSX Composite Index continued its fabulous ride, taking on 103.48 points to start Thursday at 29,282.87.
The Canadian dollar resurged 0.19 cents to 72.17 cents U.S.
ON BAYSTREET
The TSX Venture Exchange acquired 5.07 points to 872.60
Seven of the 12 subgroups were positive, led by gold, better by 1.6%, while materials soared 0.9%, and energy was ahead 0.6%.
The five losing groups were weighed most by telecoms, down 0.9%, consumer staples, off 0.4%, and industrials, trailing 0.3%.
ON WALLSTREET
Stocks rose on Thursday as traders anticipated that the latest reading of a key consumer inflation gauge won’t stand in the way of the Federal Reserve lowering its benchmark interest rate next week.
The Dow Jones Industrials darted higher 449.15 points, or 1.1%, to 45,990.07
The broader index gained 19.44 points to 6,532.05.
The NASDAQ index barely cleared breakeven, moving higher only 6.57 points to 21,812.06.
It was a confusing batch of numbers, with the consumer price index reading for August coming in hotter than expected on a monthly basis but in line with expectations on an annual basis.
The CPI reading showed an increase of 0.4% for the month, according to the Bureau of Labor Statistics, higher than the 0.3% that economists polled by Dow Jones were expecting. However, the index recorded 2.9% on a 12-month basis, as expected.
Additionally, so-called core CPI, which excludes volatile food and energy, increased 0.3% in August and 3.1% from a year ago. Both were in line with the Dow Jones forecasts.
The report comes a day after the producer price index showed an unexpected decline of 0.1% on the month. The PPI rose 2.6% on a 12-month basis.
Also on Thursday, weekly jobless claims saw a surprise jump. The figure for the week ended Sept. 6 increased 27,000 from the previous period to a seasonally adjusted 263,000. That’s more than the 235,000 that was penciled in.
Traders still generally expect that the Fed will cut rates by a quarter percentage point on Sept. 17.
Traders cheered Oracle’s growth outlook for its cloud business, and shares saw their best day since 1992 Wednesday and added $244 billion in market cap.
Traders also saw it as a positive indicator for the artificial intelligence trade at large.
Prices for 10-year Treasury eked up, lowering yields to 4.01% from Wednesday’s 4.04%. Treasury prices and yields move in opposite directions.
Oil prices dropped 99 cents to $62.68 U.S. a barrel.
Gold prices sagged $16.30 to $3,665.80 U.S. an ounce.
