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Canadian inflation data and Fed insights sway market sentiment

EditorNikhilesh Pawar
Published 21/11/2023, 17:52
© Reuters.

Investors on Bay Street today are closely monitoring the release of Canadian inflation figures and the minutes from the Federal Reserve's meeting, seeking clues on future monetary policy directions. September's inflation data showed a slight pullback to 3.8%, down from August's 4%, with the Consumer Price Index (CPI) decreasing by 0.1%. Despite this dip, core consumer prices still saw an annual increase of 2.8%, although they contracted by 0.1% on a monthly basis. Additionally, market watchers are awaiting the latest housing market statistics after a -0.2% drop in new home prices in September.

On Monday, George Weston Limited reported a nearly three percent increase in Q3 profits, contributing to the S&P/TSX Composite Index reaching a significant two-month high. In commodities, WTI crude oil saw a minor decrease to $77.44 per barrel amid a weakening dollar, while gold and silver futures rose to $1,990.10 and $23.620 an ounce respectively, driven by investor expectations that the Fed may pause rate hikes.

The TSX Composite Index experienced a surge yesterday thanks to strong performances in the healthcare and technology sectors, with Lithium Americas (NYSE:LAC) leading gains. However, First Quantum Minerals (OTC:FQVLF) faced challenges after announcing further reductions in operations at Cobre Panama due to a blockade at Punta Rincón port that has disrupted supplies.

Looking ahead, today's domestic consumer inflation data and the upcoming publication of the Fed's meeting minutes are anticipated to influence TSX market activity. Early bullish trends in gold and silver prices could benefit mining stocks. Nexgen Energy and George Weston are set to release their earnings reports, while SSR Mining (NASDAQ:SSRM) and NovaGold Resources have seen stock price declines as investors turn their attention to U.S. home sales figures.

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