Canadian Market Up Sharply On All-round Buying After U.S. Inflation Data

(RTTNews) - The Canadian market is up sharply on Tuesday with stocks across the board gaining significant ground in positive territory thanks to strong buying interest. Softer than expected U.S. inflation data, and higher commodity prices are aiding sentiment.

Real estate, materials, utilities, healthcare, financials and communications stocks are up sharply. Several stocks from consumer discretionary, technology and industrials sectors are also up with impressive gains.

The benchmark S&P/TSX Composite Index is up 325.47 points or 1.65% at 20,034.62 a few minutes past noon.

Softer than expected inflation data from U.S. has eased concerns about the outlook for interest rates. The Labor Department said U.S. consumer price index was unchanged in October after climbing by 0.4% in September. Economists had expected consumer prices to inch up by 0.1%. Core consumer prices edged up by 0.2% in October after rising by 0.3% in September. Core prices were expected to rise by another 0.3%.

The report also said the annual rate of consumer price growth slowed to 3.2% in October from 3.7% in September. Economists had expected the pace of growth to decelerate to 3.3%.

The Real Estate Capped Index has surged about 4.5%. The Materials Capped Index is climbing nearly 3% and the Utilities index is up 2.5%.

The indices tracking the movements of stocks from financials, communications, consumer discretionary and information technology sectors are up 1.7 to 1.5%.

Docebo Inc (DCBO.TO) is soaring 8.5%. BRP Inc (DOO.TO) is gaining 7%, while Colliers International (CIGI.TO), FirstService Corporation (FSV.TO), West Fraser Timber (WFG.TO) and Shopify Inc (SHOP.TO) are up 4 to 5.2%.

Cargojet (CJT.TO), TFI International (TFII.TO), Kinaxis Inc (KXS.TO), Franco-Nevada Corporation (FNV.TO), Waste Connections (WCN.TO), WSP Global (WSP.TO) and Canadian Tire Corporation (CTC.A.TO) are gaining 2 to 3.5%.

Teck Resources Limited (TECK.A.TO) is up 2.3%. Glencore Plc announced its binding agreement to acquire a 77% effective interest in Teck Resources' steelmaking coal business, Elk Valley Resources or EVR, for $6.93 billion in cash.

Premium Brands Holdings Corporation (PBH.TO) reported adjusted earnings of $56.4 million in the third-quarter of the current financial year, compared to adjusted earnings of $61.3 million in the year-ago quarter.

Data released by Statistics Canada this morning showed car registrations in Canada increased to 163,279 units in September from 158,531 units in August.