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TSX 16 Pts Higher, But Lacking Inspiration As Investors Await Clues As To When Mkt Stimulus Likely To Happen

Posted
8/15/2012 10:04:00 AM
By: MT Newswires
Referenced Stocks:NY

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 ( NY ) 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 much today."

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.