Canadian Stocks Turning In Mixed Performance After BoC Rate Cut, U.S. Inflation Data

(RTTNews) - Canadian stocks are turning in a mixed performance Wednesday morning with investors digesting the Bank of Canada's interest rate decision, and tamer than expected U.S. consumer price inflation data.

Worries about the U.S. Government's stance on tariffs, and the possibility of recession in the U.S., Canada and Mexico, are weighing on sentiment and limiting market's upside.

The U.S. Government's 25% tariff on all steel and aluminum imports took effect today, significantly impacting Canada, which is the largest foreign supplier of these metals to the United States.

The benchmark S&P/TSX Composite Index, which climbed to 24,378.39 earlier, was up 50.46 points or 0.21% at 24,298.66 a little while ago.

Communications, consumer discretionary and consumer staples shares are weak, while technology, real estate and energy stocks are gaining some ground in positive territory.

The Bank of Canada today announced its widely expected decision to lower interest rates by another 25 basis points, making its seventh straight rate cut.

The Bank of Canada said it decided to reduce its target for the overnight rate to 2.75%, with the Bank Rate at 3% and the deposit rate at 2.7%.

While the central bank noted Canadian economic growth has come in stronger than expected, it warned the pervasive uncertainty created by continuously changing U.S. tariff threats is restraining consumers' spending intentions and businesses' plans to hire and invest.

"Monetary policy cannot offset the impacts of a trade war," the Bank of Canada said. "What it can and must do is ensure that higher prices do not lead to ongoing inflation."

The Bank of Canada said it will be carefully assessing the timing and strength of both the downward pressures on inflation from a weaker economy and the upward pressures on inflation from higher costs.

Transcontinental Inc. shares are up 7.2%. Propel Holdings is climbing up nearly 5%.

Canfor Corporation is up 4.2% and Bombardier Inc is rising nearly 4%. NuVista Energy, ARC Resources, AutoCanada, Shopify, First Quantum Minerals, AtkinsRealis, MEG Energy, Peyto Exploration, International Petroleum, Teck Resources and Celestica are gaining 2 to 3.75%.

Labrador Iron Ore Royalty, Magna International, Restaurant Brands International, Boyd Group Services, MDA Space, Open Text Corporation, Baush + Lomb Corporation, Alimentation Couche Tard, BRP Inc., George Weston, Rogers Communications and Loblaw Companies are down 1.7 to 4%.

Data released by the Labor Department showed consumer prices in the U.S. increased by slightly less than expected in the month of February, edging up by 0.2%, after climbing by 0.5% in January. Economists had expected consumer prices to rise by 0.3%.

The report also said the annual rate of consumer price growth slowed to 2.8% in February from 3% in January. Economists had expected the pace of price growth to edge down to 2.9%.