Canadian Stocks Turning In Mixed Performance After Inflation Data

(RTTNews) - Canadian stocks are turning in a mixed performance on Tuesday with investors digesting data showing a slowdown in the nation's consumer price inflation and assessing the outlook for interest rates.

Energy and materials shares finding support, while healthcare and communications shares are weak.

The benchmark S&P/TSX Composite Index is down 11.90 points or 0.05% at 22,453.47 a few minutes past noon.

Data from Statistics Canada said the annual inflation rate in Canada eased to 2.7% in April from 2.9% in the earlier month, marking the softest rate of consumer price growth since March 2021.

The reading was consistent with BoC expectations that inflation should remain near 3% in the first half falling below 2.5% in the second half of the year, maintaining the signal that rate cuts are "getting closer".

Consumer prices in Canada rose by 0.5% from the prior month in April of 2024, slowing slightly from the 0.6% increase in March. Annual core inflation rate in Canada slowed to 1.6% in April of 2024, the lowest level in three years and from 2% in March.

Energy stocks Africa Oil Corp (AOI.TO) and International Petroleum Corp (IPCO.TO) are gaining 4.2% and 3.4%, respectively. Suncor Energy (SU.TO) is rising nearly 3%, while Vermilion Energy (VET.TO), Enerplus Corp (ERF.TO) and Athabasca Oil Corp (ATH.TO) are up 1.5 to 2%.

In the materials section, First Quantum Minerals (FM.TO) is up 4.7%. Seabridge Gold (SEA.TO), Stelco Holdings (STLC.TO), Nutrien (NTR.TO), Osisko Mining (OSK.TO), Pan American Silver Corp (PAAS.TO), Lundin Gold (LUG.TO), Algoma Steel (ASTL.TO) and Centerra Gold Inc (CG.TO) are gaining 2.5 to 3.6%.

Healthcare stocks Bausch Health Companies (BHC.TO) and Tilray Inc (TLRY.TO) are down 3% and 1.9%, respectively.

Quebecor Inc (QBR.TO) and Rogers Communications (RCI.B.TO), down 1.4% and 1%, respectively, are the major losers in the communications sector. BCE Inc (BCE.TO) is down 0.5%.

Telus Corp (T.TO) is down nearly 1%. The company announced Tuesday it will invest $24 billion to significantly expand and improve its network infrastructure and operations across Ontario over the next five years.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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