Equities in Toronto opened higher on Tuesday, as a moderation in U.S. inflation boosted hopes of the Federal Reserve halting interest rate hikes this week, while energy and material stocks rose on higher commodity prices.
The TSX leaped 145.26 points to open Tuesday at 20,066.57.
The Canadian dollar gained 0.23 cents to 75.05 cents U.S.
In company news, Nippon Steel remains interested in Teck Resources' steelmaking coal assets, a spokesperson said on Tuesday, adding that talks continue despite Glencore's latest offer for the Canadian miner's coal business. Teck shares ballooned $1.74, or 3.1%, to $57.64.
ON BAYSTREET
The TSX Venture Exchange barreled forward 5.33 points to 619.58.
All but three of the 12 TSX subgroups were positive in the first hour, led by energy, booming 2.4%, consumer discretionary stocks, better by 1.1%, and materials, improving 0.8%.
The three laggards were utilities, down 0.5%, information technology, scaling back 0.2%, and gold, off 0.04%.
ON WALLSTREET
Stocks rose Tuesday after new inflation data showed price pressures slowed again in May, adding to investor optimism that the Federal Reserve could skip a rate hike when it next decides on policy this week.
The Dow Jones Industrials gained 79.32 points to 34,145.65.
The S&P 500 picked up 12.84 points to 4,351.77.
The NASDAQ index added 27.64 points to 13,489.56.
Tech shares led the way as easing inflation and rates boosted optimism for the sector. Oracle shares jumped 5% after topping Wall Street’s estimates for the fiscal fourth quarter. Shares of Netflix acquired 2.4% and Meta climbed 1.2%.
A report Tuesday showed that the consumer price index in May increased 4% year over year, marking the slowest annual rate since March 2021. Following the report, traders increased their bets that the Fed will keep rates unchanged on Wednesday after hiking at 10 consecutive meetings. The latest odds gave a 99% chance the central bank would keep rates at the current target rate of 5% to 5.25%,
Prices for the 10-year Treasury skidded, raising yields to 3.78% from Monday’s 3.74%. Treasury prices and yields move in opposite directions.
Oil prices regrouped $2.53 to $69.65 U.S. a barrel.
Gold prices shed $3.90 to $1,965.80 U.S. an ounce.
