Canadian Market Down Firmly In Negative Territory After Inflation Data

(RTTNews) - Canadian stocks are down in negative territory around late morning on Tuesday despite recovering from an early setback after the nation's inflation data dashed hopes an early rate cut by the Bank of Canada.

Data from Statistics Canada showed that the consumer price index rose 3.4% year-on-year in December, following a 3.1% increase in November. The rate matched expectations.

On a seasonally adjusted monthly basis, consumer prices moved up 0.3%, the same rate as seen in the previous month. Core CPI, excluding food and energy, eased to 0.2% from 0.3% last month.

Energy and materials shares are the major losers with weak commodity prices weighing on the sectors. A few stocks from healthcare, technology and communications sectors are finding modest support.

The benchmark S&P/TSX Composite Index, which dropped to a low of 20,842.98 in early trades, is down 97.55 points or 0.46% at 20,964.33 about half an hour before noon.

The Energy Capped Index is down 1.8%. Parex Resources (PXT.TO), down nearly 14%, is the biggest loser.

Birchcliff Energy (BIR.TO), International Petroleum Corp (IPCO.TO), Vermilion Energy (VET.TO), Advantage Oil & Gas (AAV.TO) and Tourmaline Oil Corp (TOU.TO) are down 3 to 5%.

Among materials shares, First Majestic Silver Corp (FR.TO) is down more than 6%. Barrick Gold Corp (ABX.TO), Lundin Mining Corp (LUN.TO), Interfor Corp (IFP.TO), K92 Mining Corp (KNT.TO), Osisko Mining (OSK.TO), MAG Silver Corp (MAG.TO), First Quantum Minerals (FM.TO) and Lundin Gold (LUG.TO) are down 2.5 to 5%.

Technology stocks Bitfarms (BITF.TO), Copperleaf Technologies (CPLF.TO), Kinaxis Inc (KXS.TO) and Softchoice Corp (SFTC.TO) are gaining 1 to 2.2%.

Healthcare stocks Tilray Inc (TLRY.TO) and Bausch Health Companies (BHC.TO) are up 2.7% and 1%, respectively.

Data from the Canada Mortgage And Housing Corporation showed housing starts in Canada jumped by 18% over a month earlier to 249,255 units in December 2023, up from market expectations of 243,000 units,