Canada’s main stock index closed below 30000 on Tuesday as Canadian inflation rate accelerates to 2.4% in September amid rising food, travel costs
Canada’s annual inflation rate quickened in September, driven by a rebound in gasoline prices and a pickup in food and travel-related costs, adding complexity to the monetary policy outlook. According to data from Statistics Canada, the Consumer Price Index (CPI) rose 2.4% from a year earlier, up from 1.9% in August.
The commodity-heavy S&P/TSX composite index dropped 573 points or 1.72% at 29,888.82 .
Index rose by 1% to end at 30,416.44 on Monday, bouncing back from declines in the previous two sessions. Metals mining shares, underpinned by a rally in gold to fresh all-time peaks, fueled an advance in the materials sector by 2.3%.
Canada’s latest consumer price index is due out at 08:30 ET, with economists broadly expecting that it will increase by 2.3% in the 12 months to September. The reading could play into how the BoC, which is anticipated to cut interest rates when it meets later this month, addresses monetary policy at the gathering.
Dow hits record high
U.S. stocks gained, building on recent gains as investors awaited the release of a slew of quarterly corporate earnings.
At 4:00 p.m. ET (20:00 GMT), the Dow Jones Industrial Average climbed 218 points, or 0.5% to a record close of 46,924.68, while the S&P 500 index fell 0.01%, and the NASDAQ Composite slipped 0.2%.
The main averages on Wall Street rose on Monday, powered by a uptick in technology and finance shares, and helped by hopes that a resolution to a weeks-long federal government shutdown, which has led to the delay of crucial economic data and threatened to dent U.S. growth, could be coming as soon as this week.
Optimism over shutdown, trade talks
Investors have welcomed signs of resilience in the financial sector, after last week’s worries about the health of the regional banking sector, while upbeat remarks from a White House adviser helped fuel hopes that Washington’s partial shutdown could soon be resolved.
Kevin Hassett, a White House economic adviser, told CNBC on Monday that the government shutdown “is likely to end sometime this week,” comments that boosted risk appetite after weeks of political gridlock had weighed on confidence and delayed key economic data.
Optimism surrounded the U.S.-China trade fight also helped the tone, with President Donald Trump and Chinese counterpart Xi Jinping set to meet in South Korea later this month.
Netflix leads results schedule
Elsewhere, market participants are bracing for a packed earnings calendar that could set the tone for equities in the weeks ahead.
The main highlight of Tuesday’s schedule will be results from streaming giant Netflix (NASDAQ:NFLX) after the closing bell.
Shares of Netflix have climbed by more than 39% so far this year, reflecting mostly solid sentiment around a company that has moved to enhance its status as one of the icon’s of the streaming industry by introducing advertising to its platform.
