Canada's main stock index fell on Tuesday, led by declines in the materials sector, after hotter-than-expected inflation figures prompted investors to scale back bets for an imminent interest rate cut by the Bank of Canada.
The TSX was thumped 529.23 points, or 1.7%, to move into Tuesday noon at 29,887.21.
The Canadian dollar nicked ahead a dime to 71.36 cents U.S.
Despite recent market volatility, the Canadian benchmark remains near all-time highs, supported by rising gold prices and optimism about artificial intelligence from Wall Street.
In the economic docket, Statistics Canada said its consumer price index (CPI) rose 2.4% year over year in September, up from a 1.9% increase in August.
On a seasonally-adjusted monthly basis, the CPI rose 0.4% in September. The inflation reading could prove decisive for the BoC's upcoming monetary policy decision, with traders currently pricing in about 90% chance of a 25-basis-point cut.
On the trade front, The Globe and Mail reported on Tuesday that a U.S.-Canada trade deal covering steel, aluminum and energy could be ready for Prime Minister Mark Carney and U.S. President Donald Trump to sign at the Asia-Pacific Economic Cooperation summit later this month.
ON BAYSTREET
The TSX Venture Exchange lost 29.45 points, or 3%, to 953.91.
Seven of the 12 TSX subgroups were lower by lunch hour, as gold weakened 9.9%, materials sank 8.4%, and information technology was down 1.4%.
The five gainers were led by real-estate, up 0.6%, telecoms, ahead 0.3%, and consumer discretionary stocks, better by 0.2%.
ON WALLSTREET
The Dow Jones Industrial Average notched a new intraday record on Tuesday, boosted by strong earnings reports from companies such as Coca-Cola and 3M
The 30-stock index gained another 333.18 points to pause noon EDT Tuesday at 47,039.76.
The much-broader index eked ahead 11.86 points to 6,746.99.
The tech-heavy NASDAQ edged up 0.57 points to 22,991.12.
Coca-Cola and 3M led the Dow’s move after their latest releases surpassed Wall Street’s estimates, with the two jumping 3% and 5%, respectively. Fellow old economy stock General Motors soared 15% after it hiked its guidance for the full year and topped estimates.
The Detroit automaker also lowered its estimated impact from President Donald Trump’s tariffs for the year, saying that it expects to offset about 35% of that hit.
Meanwhile, other names like Zions Bancorp were 2% higher after the regional bank reported third-quarter profits that rose from a year ago, despite the disclosure of some bad loans late last week that sparked a broader market rout.
Investors are monitoring a crucial week ahead for third-quarter earnings, which are revving up with Netflix set to report after the bell Tuesday and Tesla due Wednesday. A strong start to the earnings season so far appears to be supporting the broader market rally, particularl
A strong start to the earnings season appears to be supporting the broader market rally, particularly amid an economic data blackout due to the government shutdown.
More than three-quarters of the S&P 500 companies that have posted results so far have beaten expectations, according to FactSet.
Prices for the 10-year Treasury nicked up, lowering yields to 3.96% from Monday’s 3.98%. Treasury prices and yields move in opposite directions.
Oil prices poked ahead 0.19 cents to $57.71 U.S. a barrel.
Gold prices skidded $205.10 to $4,154.30 U.S. an ounce.
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