Canada’s main stock index had a muted start on Wednesday, but all that changed as a rise in crude oil prices overshadowed investor caution ahead of U.S. inflation data. Industrials was the top gainer on the TSX while telecom was the lone decliner in an otherwise broad gain.
Meanwhile, U.S. stocks gained as investors anticipated the August consumer inflation report. The consumer price index report showed a 0.2 per cent jump in August, the same as July, putting the 12-month inflation rate at 2.5 per cent. Thursday’s producer price index could also help influence the magnitude of a widely expected rate cut at the conclusion of the Federal Reserve’s two-day meeting Sept. 18. Current trading in Fed funds futures indicates a 69 per cent probability of a 25-basis-point rate cut and a 31 per cent chance of a 50-basis-point reduction.
The Canadian dollar traded for 73.69 cents U.S. compared with 73.51 cents U.S. on Tuesday.
U.S. crude futures traded $1.46 higher at $67.21 a barrel, and the Brent contract rose $1.38 to $70.57 a barrel.
The price of gold was down US$5.70 to US$2,513.16.
In world markets, the Nikkei was down 539.39 points to 35,619.77, the Hang Seng was down 125.38 points to 17,108.71, the FTSE was down 12.04 points at 8,193.94, and the DAX was up 64.35 points to 18,330.27.
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(Top image generated with AI)