Canada’s main stock index climbed on Tuesday led by gains in the materials sector as gold prices rose, while softer-than-expected domestic consumer price inflation in September trimmed bets of another rate hike by the Bank of Canada.
The TSX Composite gained 72 points to close Tuesday at 19,692.80.
The Canadian dollar dropped 0.15 cents at 73.29 cents U.S.
Gold and materials spearheaded the move upward, with Barrick Gold Climbing 81 cents, or 3.8%, to $22.34, while Wesdome Gold tacking on 28 cents, or 3.8%, to $7.65. First Quantum Minerals ascended 36 cents, or 4.9%, to $7.72, while Silvercrest Metals grabbed 25 cents, or 3.9%, to $6.74.
Bausch Health Companies led health-care concerns up, gaining 51 cents, or 5.1%, to $10.57, while Tilray captured six cents, or 2.2%, to $2.83.
Communications weighed on the markets, Rogers Communications off 59 cents, or 1.1%, to $53.03, while Quebecor handed back 25 cents to $28.90.
In utilities, Algonquin Power & Utilities sank 27 cents, or 3.5%, to $7.56, while Transalta lost 19 cents, or 1.7%, to $11.04.
Industrials faltered, as Bombardier dipped $2.29, or 4.9%, to$44.73, while Air Canada was grounded 34 cents, or 1.9%, to $17.70.
In economic news Tuesday, the consumer price index rose 3.8% on a year-over-year basis in September, following a 4.0% increase in August. On a seasonally-adjusted monthly basis, the CPI rose 0.2% in September. Statistics Canada also says Canadian investors acquired $14.9 billion of foreign securities in August, the largest investment since April 2022. Meanwhile, non-resident investors reduced their exposure to Canadian securities by $8.5 billion, the first divestment since March 2023.
Lastly, August new motor vehicle sales totaled 158,500, compared to 147,400 in the prior-year month.
The TSX Venture Exchange strengthened 4.54 points to end Tuesday at 537.92.
Eight of the 12 TSX subgroups gained ground, led by gold, ahead 1.8%, materials, up 1.7%, and health-care, haler 1.4%,
The four laggards were weighed most heavily by consumer staples, sliding 0.9%, while utilities declined 0.4%, and industrials gave back 0.3%.
The S&P 500 closed near the flat line on Tuesday as investors analyzed the latest bond yield moves and corporate earnings season gained steam.
The Dow Jones Industrials finished ahead of breakeven by 13.44 points Tuesday at 33,997.98.
The much-broader index sank 0.43 points to close at 4,373.20.
The NASDAQ index dropped 34.24 points to 13,533.75.
To be sure, a solid start to the third-quarter earnings season is helping ease concerns somewhat.
Bank of America advanced more than 2% on the back on a better-than-expected report. Bank of New York Mellon climbed nearly 4% after also beating analyst forecasts in the quarter.
Beyond earnings, chip stocks including Nvidia and Advanced Micro Devices struggled in the session after the U.S. Department of Commerce announced plans to tighten restrictions on sales of advanced artificial intelligence chips to China.
Rising yields have pressured the broader market in recent weeks as traders assess the prospects of tighter Federal Reserve policy for longer than expected. Investors have also considered the potential impact from the Israel-Hamas war on the global economy.
Prices for the 10-year Treasury sagged, raising yields to 4.84% from Monday’s 4.71%. Treasury prices and yields move in opposite directions.
Oil prices let go of 60 cents to $87.26 U.S. a barrel.
Gold prices eked up $1.70 to $1,936.00.