By Robb M. Stewart
Canada's benchmark stock index was headed for a fresh high finish Tuesday after data showed inflation eased last month, raising expectations the central bank will offer further rate relief next week.
At midday, the Toronto Stock Exchange's S&P/TSX Composite Index was 0.8% higher, at 22928.04, and on track for a fifth consecutive daily advance. The index hit a high of 22933.58 earlier in the session, with broad gains led by finance stocks.
Toronto's blue-chip S&P/TSX 60 was ahead 0.8%, at 1366.38.
Canada's big banks were mostly higher, led by a 1% advance by Toronto-Dominion Bank.
Shopify was a big driver of gains, rising 7.4%, to 94.33 Canadian dollars (US$68.94), after analysts at BofA Securities raised their stance on the stock to "buy" from "neutral" and said they believe the e-commerce platform has turned a corner on balanced growth and margin under new Chief Financial Officer Jeff Hoffmeister.
Canada's consumer-price fell 0.1% in June to cool year-over-year price increases to 2.7%, returning to more than three-year lows following a surprise acceleration the following month. Two key measures of annual core inflation preferred by the Bank of Canada also eased, which economists said heightens the chance central bank policymakers will cut interest rates a further one-quarter point at next week's policy meeting.
Other market movers:
Barrick Gold climbed 4.3%, to C$26.19, after the miner said a rise in second-quarter gold and copper production put it on track to reach its output targets for the year.
Write to Robb M. Stewart at robb.stewart@wsj.com
(END) Dow Jones Newswires
07-16-24 1244ET
