Canadian Stocks Rising Sharply On Soft U.S. Inflation Data

(RTTNews) - Canadian shares are up sharply on Thursday thanks to hectic buying across the board after data showing a smaller than expected increase in consumer prices in the U.S. helped raise optimism the Fed will slow the pace of interest rate hikes as early as next month.

Mirroring widespread buying, all the sectoral indices in the Canadian market are up with strong gains. The Energy Index, which is up as much as 1.52% is at the bottom of the list, while the Consumer Discretionary Index, which is up nearly 7.5% tops the list.

Real estate, technology, communication services, materials and financials shares are up with strong gains.

The benchmark S&P/TSX Composite Index is up 659.56 points or 3.41% at 20,003.81 a few minutes before noon.

Shopify Inc (SHOP.TO) is up nearly 16% on strong volumes. First Quantum Minerals (FM.TO) is soaring 13%.

Brookfield Asset Management Inc (BAM.A.TO) is gaining more than 9%. The company reported that its third-quarter operating funds from operations or FFO grew 30 percent to $1.22 billion from last year's $934 million. FFO per Brookfield share was $0.73, up from $0.56 a year ago.

Net income attributable to common shareholders was $423 million or $0.24 per share, down from $797 million or $0.47 per share last year.

Agnico Eagle Mines (AEM.TO), Bank of Nova Scotia (BNS.TO), Nutrien (NTR.TO), Barrick Gold Corporation (ABX.TO), Canadian Imperial Bank of Commerce (CM.TO) and Bank of Montreal (BMO.TO) are up 3 to 7%.

The data from the Labor Department showed the consumer price index rose by 0.4% in October, less than expected increase of 0.6%. The annual rate of growth in consumer prices also slowed to 7.7% in October from 8.2% in September.

The annual rate of growth in core prices slowed to 6.3% in October from 6.6% in September, coming in below the expected 6.5% growth.

On Wall Street, the major averages are all up with strong gains. The Dow is rising 3.1%, the S&P 500 is surging 4.7% and the Nasdaq is climbing more than 6%.

Commodities are up sharply with a weak dollar triggering heavy buying. West Texas Intermediate Crude oil futures are up $1.00 or 1.17% at $86.63 a barrel.

Gold futures are rising $39.70 or 2.31% at $1,753.40 an ounce, while Silver futures are up $0.328 or 1.54% at $21.655 an ounce.