TSX Ends On Firm Note

(RTTNews) - The Canadian market ended on a firm note on Tuesday despite paring a substantial portion of its early gains.

Data showing just a moderate rise in U.S. consumer prices in the month of May raised hopes the Federal Reserve will pause interest rate hikes. Additionally, higher crude oil prices pushed up energy stocks, contributing to market's positive close.

The benchmark S&P/TSX Composite Index, which climbed to 20,099.24 in early trades, ended with a gain of 69.09 points or 0.35% at 19,990.40.

Besides energy stocks, several stocks from financials, communications and consumer sections posted notable gains.

BRP Inc. (DOO.TO), Stelco Holdings (STLC.TO), Saputo Inc (SAP.TO) and Bombardier Inc (BBD.A.TO) gained 3.7 to 5%.

Magna International (MG.TO), West Fraser Timber (WFG.TO), Teck Resources (TECK.B.TO), Cogeco Inc (CGO.TO), Cogeco Communications (CCA.TO) and Linamar Corporation (LNR.TO) climbed 2 to 3%.

Canadian Natural Resources (CNQ.TO), National Bank of Canada (NA.TO), Bank of Montreal (BMO.TO) and Molson Coors Canada (TPX.B.TO) also posted notable gains.

Enghouse Systems (ENGH.TO) ended lower by 5.6%. The company reported after trrading hours on Monday that it posted a net income of $12.5 million in the second quarter of its current financial year, compared to $17.9 million in the year-ago quarter.

CCL Industries (CCL.A.TO), GFL Environmental (GFL.TO), Shopify Inc (SHOP.TO) and Agnico Eagle Mines (AEM.TO) lost 2 to 3%.

Data from the Labor Department showed the consumer price index inched up by 0.1% in May after climbing by 0.4% in April. Economists had expected prices to tick up by 0.2%.

Core consumer prices rose by 0.4% in May, matching the increase seen in each of the two previous months as well as economist estimates.

The Labor Department also said the annual rate of consumer price growth slowed to 4% in May from 4.9% in April. The annual rate of core consumer price growth also slowed to 5.3% in May from 5.5% in April, in line with expectations.

Following the release of the report, CME Group's FedWatch Tool is indicating a 91.9% chance the Fed leaves interest rates unchanged.