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 71.88 points to move toward noon hour EDT Tuesday at 19,692.68.
The Canadian dollar dropped 0.1 cents at 73.33 cents U.S.
In corporate news, Brookfield, through its affiliate Brookfield Reinsurance, is considering entering Britain’s pension insurance industry and is open to an acquisition. Brookfield reversed and moved higher 13 cents to $44.79.
Gold and materials stocks shone brightest, with Wesdome Gold taking on 37 cents, or 5.2%, to $7.75, while Centerra Gold captured 16 cents, or 2.4%, to $6.76. Orla Mining roared ahead 31 cents, or 6.8%, to $4.89, while First Majestic Silver gathered 28 cents, or 3.8%, to $7.64.
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 4.52 points to pause for lunch Tuesday at 537.90.
Eight of the 12 TSX subgroups gained ground, led by gold, ahead 1.5%, materials, up 1.3%, and energy, better by 0.8%.
The four laggards were weighed most heavily by consumer staples, sliding 0.5%, while real estate and industrials each gave back 0.1%.
The S&P 500 was near flat on Tuesday as investors analyzed the latest bond yield moves and corporate earnings reports.
The Dow Jones Industrials revived 36.55 points to greet noon Tuesday at 34,021.09.
The much broader index changed direction also and moved ahead 6.55 points to 4,380.18.
The NASDAQ index settled 0.79 points of breakeven at 13,567.20.
Lockheed Martin climbed more than 1.5% after exceeding consensus estimates for the quarter. Bank of America also advanced more than 1% on the back on a better-than-expected report.
But Goldman Sachs slid more than 1% as investors parsed the financial giant’s latest report. 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 4.81% from Monday’s 4.71%. Treasury prices and yields move in opposite directions.
Oil prices let go of 47 cents to $86.19 U.S. a barrel.
Gold prices improved $2.50 to $1,936.8.00.