Canadian Stocks Firmly Down In Negative Territory As Inflation Data Weighs

(RTTNews) - The Canadian market is down firmly in negative territory a little past noon on Tuesday, weighed down by data showing a bigger than expected increase in Canadian consumer price inflation in the month of April.

Weak crude oil and bullion prices are hurting as well.

The benchmark S&P/TSX Composite Index is down 231.94 points or 1.13% at 20,308.03 about an hour past noon.

Data from Statistics Canada showed the annual inflation rate in Canada rose to 4.4% in April of 2023 from the 19-month low of 4.3% in the previous month, well above the expected increase of 4.1%. The hotter-than-expected inflation data has raised fears the Canadian central bank will tighten its policy stance.

Core consumer prices in Canada increased 4.1% in April over the same month in the previous year.

A separate data from Statistics Canada showed manufacturing sales in Canada rose slightly by 0.7% month-over-month in March 2023, reversing a 3.6% drop in February.

Energy, materials, real estate, utilities and industrials shares are notably lower. Several stocks from financials sector are also down in negative territory. Communications and technology stocks are finding some support.

Barrick Gold Corporation (ABX.TO), Suncor Energy (SU.TO), Enbridge Inc (ENB.TO) and Baytex Energy (BTE.TO) are down 2.5 to 3%.

Kinross Gold Corporation (K.TO), Cenovus Energy (CVE.TO), Crescent Point Energy (CPG.TO), Shopify Inc (SHOP.TO) and Tourmaline Oil Corporation (TOU.TO) are lower by 1 to 1.7%.

Seabridge Gold Inc (SEA.TO) is plunging 8%. Wheaton Precious Metals (WPM.TO), Teck Resources (TECK.B.TO), Magna International (MG.TO), Agnico Eagle Mines (AEM.TO), Precision Drilling Corporation (PD.TO) and Franco-Nevada Corporation (FNV.TO) are down 2.5 to 4%.

Lithium Americas Corp (LAC.TO) is gaining 3.2%. Aritzia Inc (ATZ.TO), Toromont Industries (TIH.TO), Onex Corporation (ONEX.TO) and CCL Industries (CCL.A.TO) are also notably higher.