Canadian Market Down Sharply On Hot Inflation Data, Weak Commodity Prices
(RTTNews) - Canadian shares are down firmly in negative territory Tuesday afternoon, weighed down by data showing a bigger than expected increase in consumer price inflation.
Weak commodity prices, and rising concerns about the health of the Chinese economy also contribute to the weakness in the market.
The benchmark S&P/TSX Composite Index is down 362.79 points or 1.79% at 19,927.84 about an hour past noon.
Data released by Statistics Canada this morning showed the annual inflation rate in Canada rose to 3.3% in July 2023 from 2.8% in the previous month and above market expectations of 3%.
On a monthly basis, the CPI rose 0.6% in July, following a 0.1% increase in June.
Canadian annual core inflation stayed at a 2-year low of 3.2% for the second month in July. Economists had expected core inflation to come in at 2.8%.
Mirroring widespread selling, all the sectoral indices are down in negative territory. Materials, energy, financials, industrials and technology stocks are among the major losers.
Premium Brands Holdings Corporation (PBH.TO), Teck Resources (TECK.B.TO), Canadian Tire Corporation (CTC.TO), Bombardier Inc (BBD.B.TO), Nutrien (NTR.TO), EQB Inc. (EQB.TO) and Methanex Corporation (MX.TO) are down 3.5 to 5.3%.
Canadian Natural Resources (CNQ.TO), Franco-Nevada Corporation (FNV.TO), Precision Drilling Corporation (PD.TO), TFI International (TFII.TO), Bank of Montreal (BMO.TO), WSP Global Inc (WSP.TO) and Royal Bank of Canada (RY.TO) are down 2 to 3%.
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