After a key inflation report in the United States, Canada’s main stock index sunk to a three-week low on Tuesday in a broad decline. Rate-sensitive technology stocks were the biggest drag on the TSX.
U.S. stocks also fell sharply after worse-than-expected inflation data was released. The Labor Department report showed that annual inflation in the United States cooled last month yet remained elevated. The consumer price index rose 0.3 per cent from December to January, up from a 0.2 per cent increase the previous month. Compared with a year ago, prices are up 3.1 per cent, above the U.S. Federal Reserve’s 2 per cent target, dousing hopes of an early rate cut.
The Canadian dollar traded for 73.69 cents compared to 74.33 cents U.S. on Monday.
U.S. crude futures traded $0.84 higher at $77.76 a barrel, and the Brent contract added $0.65 to $82.65 a barrel.
The price of gold was down US$26.24 to US$1,992.75.
In world markets, the Nikkei was up 1,066.55 points to 37,963.97, the Hang Seng remained at 15,746.58, the FTSE was down 61.41 points to 7,512.28, and the DAX was down 156.52 points to 16,880.83.
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