Bay Street Likely To Open On Volatile Note

(RTTNews) - Canadian stocks are likely to see some volatile swings on Tuesday, with investors reacting to hot inflation data, and firm commodity prices. The jump in inflation is likely to prompt the Canadian central bank to refrain from lowering interest rates at its next policy meeting.

Investors are looking ahead to the Federal Reserve's monetary policy announcement on Wednesday.

The Fed is expected to keep interest rates steady and maintain its hawkish outlook amid economic uncertainties.

The Bank of England, the Bank of Japan and the Swiss National Bank are also scheduled to make their monetary policy announcements this week.

Data from Statistics Canada said the annual inflation rate in Canada jumped to 2.6% in February from 1.9% in the previous month, the highest in eight months, as a sales tax break that ended mid of last month pushed prices higher amid an already broad-based price increase.

The Bank of Canada had forecast inflation to come in at 2.5%. Inflation index increased 1.1% in February over the previous month.

The annual core inflation rate in Canada rose for the fourth month to 2.7% in February, the higest level in fifteen months. On a monthly basis, core consumer prices increased by 0.7% in February, up from 0.4% in the prior month.

The Canadian market closed on a strong note on Monday as investors looked past concerns about trade war, and chose to focus on upcoming central bank meetings and economic data.

The Federal Reserve, the Bank of England, the Bank of Japan and the Swiss National Bank, are all scheduled to announce their monetary policies this week.

Energy and materials shares moved higher on firm oil and bullion prices. News about China's stimulus plans helped lift optimism about a recovery in the world's second largest economy.

The benchmark S&P/TSX Composite Index ended with a gain of 231.71 points or 0.94% at 24,785.11.

Asian stocks advanced on Tuesday after data showed U.S. retail sales rebounded marginally in February, helping ease recession concerns.

Regional gains were also driven by optimism over China's economy, fueled by the latest economic stimulus initiatives.

European stocks are up in positive territory with investors looking ahead to a vote on Germany's historic debt reforms.

In commodities, West Texas Intermediate Crude oil futures are up $0.86 or 1.25% at $68.44 a barrel.

Gold futures are up $35.50 or 1.18% at $3,041.60 an ounce, while Silver futures are gaining $0.642 or 1.87% at $34.950 an ounce.