TSX Edges Lower After CPI Data

The S&P/TSX Composite Index closed nearly flat at 35,702 on Monday following the release of CPI data. Inflation was unchanged at 3.0% in August, matching expectations. While the conflict in the Middle East continues to lift energy costs, gasoline prices rose 22.8% from a year earlier. The BoC’s preferred median and trimmed-mean measures of core inflation were also unchanged at 2.0% and 1.9%, respectively. The data suggests underlying price pressures remained under control, even as the BoC grows increasingly concerned about inflation risks stemming from the war. Governor Macklem warned earlier this month that the longer the conflict persists, the more likely higher energy prices are to feed through the economy. Investors widely expect the US Fed to raise rates on Wednesday. Financials traded mostly lower amid rising yields. Gold prices fell, pressuring mining shares, with Barrick and WPM each down 2.7%. Celestica plunged 8.4%, tracking a semiconductor selloff in the US.

The S&P/TSX Composite Index edged lower to trade below 36,000 on Monday following the release of CPI data. Canada’s annual inflation was unchanged at 3.0% in August, in line with market expectations. Price growth remained dominated by energy goods as the war in the Middle East disrupted a key source of global oil supply, while core inflation measures tracked by the Bank of Canada remained close to the central bank’s target. Financials traded mostly lower amid rising yields across North America. Gold prices fell, pressuring mining shares, with Agnico Eagle and Barrick down about 3% and WPM shedding 3.5%. Celestica tumbled nearly 7% as traders took profits following a sharp rally sparked by a major leadership shakeup that elevated longtime CFO Mandeep Chawla to Group President, Global Markets, reinforcing confidence in the company’s multi-year growth plan.

Futures tracking the Toronto Stock Exchange edged lower on Monday following the release of CPI data. Canada’s annual inflation was unchanged from the previous month at 3.0% in August, in line with market expectations. Price growth remained dominated by energy goods as the war in the Middle East disrupted a key source of global oil supply. Core inflation measures tracked by the Bank of Canada remained close to the central bank’s target. US-listed major banks moved lower in pre-market trading amid a rebound in oil prices and expectations of a Fed rate hike on Wednesday. Gold prices fell, putting pressure on mining shares.