TSX Continues To Climb New Highs As Rate Cut Hopes Rise

(RTTNews) - The Canadian market is up firmly in positive territory around noon on Thursday, led by strong gains in financials, real estate, consumer discretionary and industrials stocks.

Rising prospects of a rate cut by the Federal Reserve following data showing the annual growth of consumer prices in the U.S. came in line with estimates, and signs of weakness in the labor market, help undermine sentiment. The Bank of Canada is also widely expected to announce an interest rate cut next week.

The benchmark S&P/TSX Composite Index was up 190.55 points or 0.65% at 29,369.94 a few minutes past noon. The index touched a new record high of 29,382.66 today.

Manulife Financial is gaining 2.3%. IA Financial Corp, TMX Group, Igm Financial, Onex Corp, Power Corporation of Canada, Sun Life Financial and National Bank of Canada are gaining 0.8 to 2%.

Consumer discretionary stocks Restaurant Brands International and Magna International are up 2.1% and 2%, respectively. Canadian Tire Corporation, Linamar Corp., and Dollarama are also notably higher.

In the real estate sector, Allied Properties Real Esate Invesment Trust is up 2.5%. FirstService Corp, Dream Industrial, Altus Group, Colliers International, Killam Apartment and Boardwalk Real Estate Investment Trust are gaining 1.5 to 2%.

Among industrials, Aecon Group is up nearly 7%. Atkins Realis Group is gaining 4.7% and Bird Construction is climbing up 3.2%. Tfi International, Stantec, WSP Global and Rb Global are also up with impressive gains.

The Labor Department report said the U.S. consumer price index climbed by 0.4% in August after inching up by 0.2% in July. Economists had expected consumer prices to rise by 0.3%.

The report also said the annual rate of consumer price growth accelerated to 2.9% in August from 2.7% in July, in line with economist estimates. The annual rate of core consumer price growth in August was unchanged from the previous month at 3.1 percent, in line with economist estimates.

Another report from the Labor Department said initial jobless claims climbed to 263,000, an increase of 27,000 from the previous week's revised level of 236,000. Economists had expected jobless claims to edge down to 235,000 from the 237,000 originally reported for the previous week.