Canadian Market Modestly Higher After Inflation Data

(RTTNews) - The Canadian market is up in positive territory Tuesday afternoon, supported by gains in energy, utilities and consumer sectors, although the mood remains cautious ahead of the Federal Reserve's policy announcement due tomorrow.

Data showing a surprise fall in Canada's headline inflation in February is aiding sentiment.

Data from Statistics Canada showed that the consumer price index rose 2.8% year-on-year, down from a 2.9% gain in January. Economists had expected inflation to rise to 3.1%.

On a seasonally adjusted monthly basis, consumer prices moved up 0.1%, compared to a 0.1% fall in the prior month. Core CPI, excluding food and energy, held steady at 0.1%.

The surprise drop in headline inflation has raised expectations the Canadian central bank will consider reducing rates sometime soon.

The benchmark S&P/TSX Composite Index is up 75.08 points or 0.34% at 21,912.26.

AutoCanada Inc (ACQ.TO) is gaining nearly 4%. West Fraser Timber (WFG.TO), Tecsys Inc (TCS.TO), Morguard Corporation (MRC.TO), Cogeco Inc (CGO.TO), Alimentation Couche-Tard (ATD.TO), RB Global (RBA.TO), TFI International (TFII.TO), Toromont Industries (TIH.TO), Canadian Tire Corporation (CTC.A.TO) and CGI Inc (GIB.A.TO) are up 1 to 3%.

Celestica Inc (CLS.TO) is declining 3.5%. Newmont Corporation (NGT.TO), Canadian Pacific Kansas City (CP.TO), Franco-Nevada Corporation (FNV.TO), Waste Connections (WCN.TO) and Intact Financial Corporation (IFC.TO) are down with sharp to moderate losses.

Pembina Pipeline Corp. (PPL.TO) announced Tuesday that it has received a "no-action letter" from the Canadian Competition Bureau confirming that the Commissioner of Competition does not intend to challenge the proposed acquisition by Pembina of Enbridge's interest in the Alliance, Aux Sable, and NRGreen joint ventures. The stock is gaining about 0.8%.

K92 Mining Inc (KNT.TO) is down 3% after the company announced today that it has temporarily suspended underground operations at the Kainantu Gold Mine due to a non-industrial incident earlier this month.