Healthy Gains for TSX by Noon
Stock indices in Canada’s largest centre found their stride by noon EDT on Tuesday, as benign U.S. inflation data reinforced expectations for an interest-rate cut by the country's Federal Reserve in September.
The TSX Composite Index gained 108.67 points midday Tuesday at 27,883.90
The Canadian dollar edged ahead 0.07 cents to 72.67 cents U.S.
Telecoms showed the way up, with Rogers Communications grabbing 88 cents, or 1.9%, to $47.58, while shares in Quebecor gathered 78 cents, or 2%, to $39.03.
ON BAYSTREET
The TSX Venture Exchange dipped 4.98 points to 788.26 by lunchtime Tuesday.
All but three of the 12 TSX subgroups were higher Tuesday, led by telecoms, up 1.4%, health-care, up 1.3%, and information technology stocks, clicking up 1%.
The three laggards were consumer staples, improving 0.5%, utilities, backtracking 0.3%, and industrials, off 0.03%.
ON WALLSTREET
Stocks rose Tuesday as investors breathed a sigh of relief that a tamer-than-expected inflation report might give the Federal Reserve the green light to cut interest rates next month.
The Dow Jones Industrial Average ballooned 458.47 points to 44,333.56.
The S&P 500 index regained 53.73 points to 6,426.76.
The NASDAQ hiked 202.02 points to 21,587.43.
Stablecoin issuer Circle Internet Group jumped 12% after reporting a 53% year-over-year rise in its second-quarter revenue.
Tuesday’s fresh inflation data release reassured investors, who have feared that President Donald Trump’s broad tariff policies could spike prices in the U.S. economy.
The consumer price index rose 2.7% on an annualized basis in July, while a Dow Jones estimate had called for a 2.8% rise. So-called core CPI, which strips out volatile food and energy prices, increased by 3.1% year on year — slightly more than the expected 3%.
Expectations for lower rates soared following the report. Traders are now pricing in a nearly 91% chance of a rate cut next month. That’s up from a 85% chance before the data release. Traders also increased their bets on rate cuts in October and December.
Prices for 10-year Treasury were down Tuesday, raising yields to 4.30% from Monday’s 4.28%. Treasury prices and yields move in opposite directions.
Oil prices slid 68 cents to $63.28 U.S. a barrel.
Gold prices stepped back $1.50 to $3,403.20 U.S. an ounce.
