Canada's commodity-heavy stock index opened higher on Wednesday, helped by mining and financial shares, while an in-line U.S. inflation reading kept investors leaning toward a Federal Reserve rate hold.
The TSX soared 121.24 points to reach noon EDT at 36,597.16.
The Canadian dollar slid 0.04 cents at 71.83 cents U.S.
I-80 Gold Corp gained seven cents, or 3%, to $2.38, Discovery Mining inched up eight cents to $10.83, and Aris Mining advanced eight cents, or 3.4%, to $24.93.
In earnings reported late on Tuesday, Constellation Software posted a rise in second-quarter net income, while gold royalty firm Franco-Nevada missed quarterly earnings estimates.
Constellation shares slipped $206.78, or 6.4%, to $3,013.83, while Franco shares fell $4.47, or 1.4%, to $330.07.
Air Canada restored its annual core profit target, but at a lower level from its previously suspended outlook. The Maple Leaf airline saw its shares jump $3.13, or 11.5%, to $30.40.
Markets also digested quarterly results from Metro and Hydro One, among others. Metro shares grabbed $1.30, or 1.5%, to $91.08, while Hydro One gained 76 cents, or 1.4%, to $56.76.
On the economic slate, Statistics Canada reported building permits rebounded by $2.3 billion (+18.5%) to reach $14.9 billion, more than offsetting the monthly declines recorded in April (-$536.7 million) and May (-$383.3 million).
Separately, Federal Trade Minister Dominic LeBlanc, met with U.S. trade officials on Tuesday, marking his third meeting in as many weeks to try to avert looming tariffs on August 19.
ON BAYSTREET
The TSX Venture Exchange moved forward 3.93 points to 970.51.
The 12 TSX subgroups were evenly divided between gainers and losers, with gold leading the former half, up 1.4%, materials, advancing 1%, and financials, ahead 0.6%.
The half-dozen laggards were weighed by real-estate, sinking 0.7%, information technology, weakening 0.5%, and telecoms, off 0.3%.
ON WALLSTREET
The S&P 500 rose on Wednesday on the back of a tame U.S. inflation report and tech gains led by artificial intelligence plays CoreWeave and Super Micro Computer
The Dow Jones Industrials restocked 13.77 points to pause for lunch Wednesday at 53,805.62.
The much-broader index moved positive 13.12 points to 7,741.32.
The NASDAQ Composite regrouped 105.87 points to 26,551.31.
Meanwhile, the latest quarterly results and guidance from CoreWeave and Super Micro Computer reassured investors that demand in the artificial intelligence buildout is stable.
CoreWeave shares jumped 18% after the cloud infrastructure mainstay’s second-quarter adjusted operating income margin of 5% exceeded expectations, while its revenue doubled from a year ago. Super Micro Computer added 13% following a strong earnings and revenue forecast for the first quarter.
Other stocks related to AI also gained. Dell Technologies and Micron Technology advanced more than 4% and 6%, respectively, while Cisco Systems rose more than 2%. Additionally, U.S.-listed shares of Dutch neocloud specialist Nebius were also up more than 16%.
Other stocks related to AI also gained. Dell Technologies acquired 4% and Micron Technology advanced more than 6%, while Cisco Systems rose more than 2%. Additionally, U.S.-listed shares of Dutch neocloud specialist Nebius were also up more than 16%.
July’s consumer price index came in as expected, with headline rising 0.1% on the month and the annual inflation rate landing at 3.4%.
Core CPI, which excludes food and energy, advanced 0.2% last month and 2.5% on the year. The annual rate for both headline and core CPI marked a slight decrease from June.
This comes as the Federal Reserve has been laser focused on the impact higher pricing pressures are having on the U.S. consumer, with three dissenters at the last meeting voting to raise rates.
Those concerns have yet to abate, with U.S. oil prices pushing above $83 a barrel Wednesday, as hopes of a reopening of the Strait of Hormuz dwindle.
Prices for the 10-year Treasury showed strength, dropping yields to 4.67% from Tuesday’s 4.69%. Treasury prices and yields move in opposite directions.
Oil prices peeked up two cents to $83.22 U.S. a barrel.
Gold prices gained $39.20 to $4,480.30 U.S. an ounce.
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