Toronto Stock Exchange (TSX) which is the main stock index of Canada, is at a multi-week high ahead of the long-awaited inflation data. Experts believe that this upward movement in the stock index is mainly due to the lift in various sectors such as technology, finance, and energy.
Looking ahead, experts are anticipating major economic data from Canada, such as consumer price inflation (CPI). And as things stand right now, the last trading price of the TSX index was around 20,398, which is an increase of 0.19% for the day.
During the month of November, the core inflation of Canada was 6.8%. This was mainly due to the rise in the prices of gasoline and other energy products. But for now, most of the focus is on the inflation data for December. And most analysts are of the view that it will be 6.4% on a yearly basis.
Once the CPI report is released, it will become clear how Canada is fighting inflation and what further steps need to be taken.
If we look at Canada's neighbor, the markets in the US will remain closed for the holiday. So on that front, the trade volumes will be lower in the US stocks as well as other major markets during the US session.
For now, the sectors which posted healthy advances in the last few weeks are the tech, financial, and energy sectors. Overall, the gains in these sectors were 0.2% - 0.4%. At the same time, the stocks of gold miners saw a decline of 0.2% which also lead to a drop in gold prices.
Meanwhile, the sales from Canadian factories remained flat for the month of Novemmber on a m/m basis. Basically, higher sales in the fabricated metals and vehicles was balanced by lower sales in the coal, petroleum, and chemical products.
TSX which is commodity heavy & a leading index from Canada has gained 5% since the 2023's start. On the other hand, the S&P 500 index from the USA has only gained 4.1% for the years. So on that front, it seems that the Candain index is wining the race for now.