Canadian Stocks Rise On Soft Inflation Data, Higher Commodity Prices

(RTTNews) - The Canadian market is up firmly in positive territory around noon on Tuesday with soft inflation data and encouraging housing starts numbers aiding sentiment.

Rising crude oil and bullion prices too contribute to the positive mood in the market.

The benchmark S&P/TSX Composite Index is up 130.88 points or 0.65% at 20,357.67 at noon.

Data from Statistics Canada showed the annual inflation rate in Canada fell to 2.8% in June of 2023, the lowest since March of 2021, after coming in at 3.4% in May. Over the previous month, the Consumer Price Index increased 0.1% in June.

Meanwhile, core inflation eased to a 2-year low of 3.2% in June, down from 3.7% in May, and below forecasts of 3.5% increase. Core consumer prices went down 0.1% over a month in June 2023, after a 0.4% rise in the prior month.

Housing starts in Canada increased by 41% over a month earlier to 281,373 units in June 2023, above market expectations of 220,000 units. That was the largest change in over 10 years, according to the Canada Mortgage and Housing Corporation.

Data from Statistics Canada showed industrial producer prices in Canada slid by 0.6% over a month in June 2023, falling for the 3rd consecutive month. Prices of raw materials declined with the Raw Materials Price Index dropping by 1.5% on a monthly basis in June, following a revised 5% drop in May.

Energy and materials shares are among the top gainers. A few stocks from financials and consumer discretionary sectors are also notably higher. Shares from the rest of the sectors are turning in a mixed performance.

TFI International (TFII.TO) is climbing up nearly 7%. Nutrien (NTR.TO), Precision Drilling Corporation (PD.TO), Nuvei Corporation (NVEI.TO), Canadian Natural Resources (CNQ.TO), Tourmaline Oil Corp (TOU.TO), goeasy (GSY.TO) and Agnico Eagle Mines (AEM.TO) are gaining 2.7 to 5%.