Canada's main stock market is up around 16 points but has lost
some of its earlier gains Wednesday as investors await clues from
central banks as to when the next round of market stimulus is
likely to happen. The market appears to lack solid inspiration -
not helped by the release of mixed U.S. data today.
On CPI and Empire Manufacturing data, CIBC said: "US CPI was
flat in July, and up only 0.1% excluding food/energy. While we had
expected a below-consensus reading, the results were below our call
on core. That leaves the core inflation rate still at 2.1%, so
there's no deflation signals at this point, and headline inflation,
at a mere 1.4%, is likely to head higher as both food and energy
prices add pressure in upcoming months. Separately, the Empire (
) factory index was also soft, dropping to -5.85 from 7.39 the
prior month. That's a new low for this year, but in line with where
it stood from June to October last year. Attention on that regional
number will likely fade when we get the national industrial
production figures later this morning. With inflation not much of
an issue these days, the CPI results aren't likely to move markets
RBC noted Industrial production rose 0.6% in July, slightly
above market expectations for a 0.5% increase. The previously
reported 0.4% increase in June was revised down to 0.1%. However,
this was offset by upward revisions to prior months to leave the
level of the index unchanged in June.
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