Equities in Canada’s largest centre rose to a near one-week high on Tuesday, as the data showing U.S. consumer prices rose moderately in May boosted bets on interest rate pause by the Federal Reserve, while gains in energy stocks added to the sentiment.
The TSX leaped 133.67 points to proceed into noon hour EDT Tuesday at 20,054.98.
The Canadian dollar popped 0.45 cents to 75.26 cents U.S.
Among major movers, Teck Resources advanced $1.88, or 3.4%, to $57.78 with Nippon Steel remaining interested in the Canadian miner's steelmaking coal assets, despite Glencore's latest offer for its coal business.
BRP Inc soared $3.73, or 3.7%, to $104.25 after D.A. Davidson raised its target price on the stock.
ON BAYSTREET
The TSX Venture Exchange stayed above water 2.96 points to 617.21.
All but three of the 12 TSX subgroups were positive near noon, led by energy, booming 2.2%, financials, richer 1%, and materials, improving 0.9%.
The three laggards were information technology, scaling back 0.8%, utilities, sliding 0.7%, and gold, off 0.3%.
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 muscled up 202.44 points to greet noon hour at 34,268.77.
The S&P 500 bounced 34.86 points to 4,373.75.
The NASDAQ index added 111.05 points to 13,572.97.
Oracle shares jumped 2.1% after topping Wall Street’s estimates for the fiscal fourth quarter. Shares of Netflix took on 2.2%, and Meta climbed 0.8%.
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 3.79% from Monday’s 3.74%. Treasury prices and yields move in opposite directions.
Oil prices regrouped $2.38 to $69.50 U.S. a barrel.
Gold prices shed $5.20 to $1,964.50 U.S. an ounce.
