Canada’s main stock index rose on Wednesday as investors welcomed a US inflation report that lifted hopes for more rate cuts by the Federal Reserve this year. The telecom sector was the only laggard in an otherwise broad increase for the TSX.
The latest consumer price index report spelled good news for US markets, as it showed that core inflation unexpectedly slowed in December. Major US banks also kicked off the quarterly earnings reporting season with impressive results. The Bureau of Labor Statistics reported that core inflation (minus food and energy) rose 3.2 per cent in December, slightly down from the previous month and below the 3.3 per cent Dow Jones economists estimated. Meanwhile, the 0.4 per cent month-over-month increase in headline inflation was slightly above the 0.3 per cent forecast by economists. On a 12-month basis, headline inflation increased by 2.9 per cent, in line with forecasts.
Southern California is bracing for “extremely critical fire conditions” due to a new period of winds across parts of Los Angeles. Firefighters continue to battle ongoing blazes in the region.
After months of deadlock and more than 15 months of deadly conflict, Israel and Hamas reached a new Gaza ceasefire and hostage release deal, according to President Joe Biden.
The Canadian dollar traded for 69.77 cents US compared to 69.64 cents US on Tuesday.
US crude futures traded $3.04 higher at US$80.54 a barrel, and the Brent contract rose $2.59 to US$82.51 a barrel.
The price of gold was up US$27.45 to US$2,695.91.
In world markets, the Nikkei was down 29.72 points to 38,444.58, the Hang Seng was up 66.29 points to 19,286.07, the FTSE was up 99.59 points to 8,301.13, and the DAX was up 303.35 points to 20,574.68.
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(Top image generated with AI.)