Canada’s main stock index hit a near 10-week high on Tuesday, helped by financial stocks after data showed increased pressure on core prices, fueling bets of another big rate hike by the Bank of Canada next month.
By Tuesday’s lunch break, the TSX was up 47.6 points at 20,228.20.
The Canadian dollar gained 17 cents to 77.66 US cents
On the economic front, Statistics Canada said foreign investors reduced their holdings of Canadian securities by $17.5 billion in June, the biggest selloff since December 2018.
At the same time, Canadian investors reduced their holdings of foreign securities by $12.3 billion after a small investment in May.
The Consumer Price Index (CPI) rose 7.6% yoy in July, compared to 8.1% in June. On a seasonally adjusted monthly basis, the CPI increased by 0.3% in July.
ON BAY STREET
The TSX Venture Exchange fell 6.67 points to 671.83.
Seven of the 12 sub-sectors of the TSX were positive at midday, led by financials and communications, each up 0.8%, while consumer staples were up 0.6%.
The top five laggards were healthcare, down 1.2%, while energy fell 1% and information technology 0.8%.
ON WALL STREET
The Dow Jones industrial average rose for a fifth consecutive day on Tuesday as Wall Street weighed on strong earnings results from Walmart and Co
The 30-stock index rose 267.36 points to 34,179.80 by midday Tuesday.
The S&P 500 recovered 13.35 points to 4,310.49.
The NASDAQ Composite remained down 8.63 points at 13,119.42.
Walmart reported earnings per share that beat analysts’ expectations and maintained its guidance for the second half, sending shares up more than 5%. Home Depot’s shares rose 4% after reporting better-than-expected results and maintaining its guidance for 2022.
Among newcomers, retail stocks like Target, Best Buy, and Bath & Body Works were up more than 4%. Retail gains continue with news from Target and Lowe’s on Wednesday.
Wall Street has had a solid session, with major moving averages rising on Monday after a sharp reversal later in the day. The move higher was based on the market’s recovery from the June low.
Treasury bond prices fell, pushing yields up to 2.84% from 2.80% on Monday. Government bond prices and yields move in the opposite direction.
Oil prices slipped $2.11 to $87.30 a barrel.
Gold prices fell $8.30 to $1,789.80 an ounce.