Stocks in Toronto hit a one-week high on Tuesday, lifted by technology and mining issues, as softer-than-expected U.S. inflation raised hopes the Federal Reserve could shift to smaller rate hikes.
The TSX Composite came off its highs of the morning, but remained above Monday’s close by 103.07 points to reach noon hour Tuesday at 20,122.77.
The Canadian dollar regained 0.43 cents at 73.79 cents U.S.
Rate-sensitive technology stocks led gains, with Shopify up $1.87, or 3.6% to $54.15.
Elsewhere, Bank of Montreal slipped $1.24, or 1%, to $123.89, after announcing an offering of common shares.
Canadian stocks have recovered sharply from their October lows on hopes the U.S. Fed and other major central banks may temper their aggressive rate-hike stances on signs inflation may have peaked.
Meanwhile, the Bank of Canada is trying to raise rates enough to tame inflation without forcing the economy into a deep recession, Governor Tiff Macklem said on Monday, but the greater risk of the two is sticky inflation, which would require "much higher" rates.
ON BAYSTREET
The TSX Venture Exchange remained buoyant 2.56 points to 576.45.
All but two of the 12 subgroups gained ground, with information technology improving 2%, materials, ahead 1.9%, and gold brighter by 1.8%.
The two laggards were financials, down 0.7%, and consumer discretionary, sliding 0.04%.
ON WALLSTREET
Stocks jumped Tuesday after a lighter-than-expected consumer prices report for November raised expectations that inflation is peaking.
The Dow Jones Industrials came off its highs of the morning, but still pushed higher 200.3 points to 34,205.34.
The S&P 500 gathered 54.82 points, or 1.4%, to 4,045.38
The NASDAQ Composite Index jumped 228.26 points, or 2.1%, to 11,372.
Shares of Apple gained 2%, while shares of Microsoft, Amazon and Alphabet all jumped more than 3%. Netflix also added 3%. Meanwhile, Tesla fell to its lowest level in two years, dropping more than 3% despite climbing earlier in the day.
The consumer price index rose just 0.1% from the previous month, and increased 7.1% from a year ago, the U.S. Labor Department reported Tuesday. Economists surveyed by Dow Jones had been expecting a 0.3% monthly increase and a 7.3% 12-month increase.
Excluding volatile food and energy prices, so-called core CPI rose 0.2% on the month and 6% on an annual basis, compared to respective estimates of 0.3% and 6.1%.
Prices for the 10-year Treasury were up sharply, lowering yields to 3.47% from Monday’s 3.62%. Treasury prices and yields move in opposite directions.
Oil prices picked up $2.23 to $75.40 U.S. a barrel.
Gold prices surged $32.70 to $1,825.00 U.S. an ounce.
Dow Gathers 200+ on Hopes Inflation is Peaking
Related Stories
