TSX Posts Record Closing High On Soft Inflation Data

(RTTNews) - The Canadian market climbed to fresh intraday and closing highs on Tuesday as soft inflation data raised expectations of an interest rate cut by the Bank of Canada next week.

Optimism about an interest rate cut by the Federal Reserve in September contributed as well to the positive mood on Bay Street.

The benchmark S&P/TSX Composite Index ended with a gain of 243.71 points or 1.07% at 22,995.39, slightly off the day's high of 22,996.14.

Technology, materials and consumer discretionary stocks were among the major gainers in the session. Industrials, real estate and healthcare also moved higher.

The Information Technology Capped Index climbed 3.12%. Shopify Inc (SHOP.TO) rallied more than 8.5%. The stock gained following BofA Global Research upgrading its rating to "buy."

Bitfarms (BITF.TO) jumped 7.4%. Coveo Solutions (CVO.TO) gained 4.7%, while Converge Technology Solutions (CTS.TO), Tecsys Inc (TCS.TO) and Celestica Inc (CLS.TO) gained 3.3 to 3.75%.

The Materials Capped Index gained 2.04%. Novagold (NG.TO) climbed 7.3%. Canfor Corp (CFP.TO), First Majestic Silver Corp (AG.TO), MAG Silver Corp (MAG.TO), Ssr Mining Inc (SSRM.TO), Barrick Gold Corp (ABX.TO), Wheaton Precious Metals (WPM.TO), Pan American Silver Corp (PAAS.TO), B2Gold Corp (BTO.TO), Interfor Corp (IFP.TO) and Iamgold (IMG.TO) gained 3 to 6%.

Consumer discretionary stocks Sleep Country Canada Holdings (ZZZ.TO), Restaurant Brands International (QSR.TO), Brp Inc (DOO.TO), Magna International (MG.TO), Spin Master Corp (TOY.TO), Mty Food Group (MTY.TO), Canadian Tire Corporation (CTC.A.TO), Linamar Corp (LNR.TO) and Aritzia Inc (ATZ.TO) ended higher by 2 to 4.3%.

Data from Statistics Canada said the annual inflation rate in Canada eased to 2.7% in June from 2.9% in the earlier month, and equaling the three-year low from April.

Canadian consumer prices edged down by 0.1% from the previous month in June, against estimates of a 0.1% increase. Consumer prices saw the first monthly decrease of the year in June.

The core inflation rate in Canada fell 0.1% from a month earlier in June, following a 0.6% increase in May. Core consumer prices in Canada increased by 1.9% in June, compared to the same month in the previous year, and up from 1.8% in May.

Data released by Canada Mortgage and Housing Corporation showed housing starts in Canada fell by 9% over a month earlier to 241,672 units in June.