Toronto stocks rise as soft inflation data boosts rate cut hopes
At 9:44 a.m. ET (1344 GMT), the Toronto Stock Exchange's S&P/TSX composite index was up 0.12% at 27,956.08 points, hovering near record levels.
A Reuters poll released on Tuesday found
the index is set to extend its record-setting run this year and next as lower borrowing costs and potential greater clarity on US tariffs offset expected pressure on corporate profits.
Canada's annual inflation rate eased to 1.7% in July from 1.9% in the prior month as lower year-on-year gasoline prices kept the consumer price index low, but core measures of inflation stayed sticky, data showed on Tuesday.
The annual rate of consumer price inflation moved further below the midpoint of the Bank of Canada's 1% to 3% target range.
Two-year government bond yields, influenced by short-term policy expectations, were down about 3.5 basis points at 2.704%.
Odds for a quarter-point rate cut by the BoC next month stood at about 40%, above 31.4% seen earlier in the day. Allan Small, senior investment advisor at Allan Small Financial Group with iA Private Wealth, said that the inflation being well below the BoC's target and hits to the economy due to tariffs support the case for a rate cut.
Meanwhile, Air Canada rose 2% after its unionized flight attendants reached an agreement with the country's largest carrier to end a strike.
Sector-wise, capped communications and industrials led the gains, rising 0.5% and 0.4%, respectively.
Information technology and healthcare lost around 0.6% each. Heavyweight energy fell 0.2%, as crude prices fell on the rising chances of an end to sanctions on Russian crude.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Business Recorder
2 hours ago
- Business Recorder
Sanctions-hit Indian refiner Nayara turns to dark fleet, tanker data shows
NEW DELHI: Indian refiner Nayara Energy, backed by Russia and under European Union sanctions, isrelying on a dark fleet to import oil and transport refined fuels, according to shipping reports and LSEG flows. Nayara, which controls about 8% of India's 5.2 million barrel-per-day refining capacity, has been struggling to transport fuel since being placed under EU sanctions in July, a move that prompted shippers to back out, forcing the refiner to cut its crude runs. India, the world's third-largest oil importer and consumer, abides by UN sanctions and not unilateral actions, allowingrefiners to import oil and ship products in vessels also under EU sanctions. This month, Nayara has imported at least seven cargoes of Russian oil, including on sanctions-hit vessels Centurion, Mars 6, Pushpa, Horae and Devika, formerly known as Apar, according to shipping reports and LSEG data. All were carrying about 700,000 barrels of Russian flagship Urals crude, the data shows. India's Nayara exports first gasoline since sanctions, sources say Nayara did not respond to an email seeking comment. Prior to the sanctions, Nayara was selling about 70% of the refined fuels produced at its 400,000 bpd day Vadinar refinery in western Gujarat state through its local network of more than 6,600 fuel stations, and exporting the rest. Nayara, majority owned by Russian entities including Rosneft , is seeking government help to secure ships and maintain stable operations at the refinery, where it has cut runs to 70-80% of capacity. A shipping source said Indian lines that undertake overseas voyages are not willing to carry oil and refined products for Nayara, while an official at a company that regularly shipped Nayara's refined products said they could not get insurance cover for their vessels in such cases. Another shipping source said Russian entities were helping Nayara arrange ships. According to LSEG trade flows, the company has used the Next, Tempest Dream, Leruo, Nova, Varg, Sard and Uriel – all under EU sanctions - to ship refined fuels, mainly gasoline and gasoil. Some of the vessels were renamed after being placed under sanctions. Evgeniy Griva, Russia's deputy trade representative to India, on Wednesday said Nayara is getting oil supplies from Russian oil major Rosneft and is not facing problems.
Business Recorder
5 hours ago
- Business Recorder
Arabica coffee slips after matching two-month high
LONDON: Arabica coffee futures on ICE eased on Wednesday after earlier matching the prior session's two-month high with the market technically overbought after its recent strong advance. Coffee Arabica coffee futures fell 0.2% to $3.5545 per lb by 1200 GMT after rising as far as $3.5910. Dealers said the market may be due for a period of consolidation after the recent strong advance in prices. The market has been supported by a drop in certified exchange stocks as roasters look to secure alternative supplies following the imposition of a 50% tariff on U.S. imports of Brazilian coffee. Dealers noted, however, that exchange stocks had begun to creep up this week, standing at 736,573 bags, as of August 19, up from a recent low of 726,661 bags on August 14. Most of the added coffee is from Honduras with some increase also in Mexican supplies. Robusta coffee gained 1% to $4,312 a metric ton. Arabica coffee turns lower after setting two-month peak Sugar Raw sugar rose 1.7% to 16.58 cents per lb. Dealers said supportive factors included the recent rise in refining margins, which should boost demand for raws, and sentiment that strong imports into China in July are likely to continue for at least the next couple of months. White sugar gained 2.7% to $490.60 a ton. Cocoa New York cocoa fell 0.75% to $8,106 a ton. Dealers said there remained concern about dry weather in West Africa while noting isolated showers this week had provided some relief. London cocoa lost 0.4% to 5,534 pounds per ton.
Business Recorder
5 hours ago
- Business Recorder
India rate panel says US tariffs key drag on growth, flags benign inflation outlook
MUMBAI: India's monetary policy committee members flagged evolving risks from global trade tensions and tariffs as a key drag on growth but said the economy remains resilient with the inflation outlook benign, minutes of the August meeting showed on Wednesday. The Reserve Bank of India held its key repo rate steady at 5.50% earlier this month, after cutting rates by 100 basis points so far in 2025. The six-member Monetary Policy Committee voted unanimously to retain a 'neutral' stance, citing the need for flexibility amid domestic and global uncertainties. 'Growth projected at 6.5% is resilient,' RBI Governor Sanjay Malhotra wrote in the minutes, but added the projection was 'certainly lower than what we can achieve.' He warned that uncertainty in external demand, driven by tariffs and geopolitical tensions, remained a major drag on growth. India faces as much as 50% tariff on exports to the United States starting August 27 after U.S. President Donald Trump imposed an additional 25% tariff earlier in the month citing New Delhi's continued imports of Russian oil. Malhotra said the moderation in food inflation since the June meeting was larger than expected, but cautioned that the uncertainties around tariffs were still evolving. He added that the neutral stance would provide the necessary flexibility to respond to changing conditions. India panel proposes exempting taxes on health, life insurance India's retail inflation rate dropped to its lowest level in eight years in July, as falling food prices, especially vegetables and pulses, squeezed farmers' incomes. Deputy Governor Poonam Gupta said the moderation in inflation was not broad-based and was primarily driven by food prices falling. 'Core inflation is likely to remain above 4% in the near to medium term, barring any major negative shock to input prices,' she wrote. MPC member Ram Singh said the average CPI inflation outlook for 2025–26 had become 'very benign,' though core inflation was expected to stay above the target range. He flagged sustained growth in construction, trade and services, but warned of high uncertainty on both inflation and growth fronts. External member Nagesh Kumar said the case for stimulating private investments and urban demand remains strong while the benign inflation outlook also provides policy space. But considering trade policy uncertainties, it is better to wait and watch before looking at any policy decisions at the October meeting, he said. External member Saugata Bhattacharya said monetary policy has to address multiple, often conflicting, objectives andoptimise the consequent trade-offs. He highlighted the trade-off between loan and deposit rates as one of the key considerations. The central bank has a 4% inflation target, with a tolerance band between 2% and 6%. India reports GDP growth data on Friday.
