The Canadian stock market turned negative on Tuesday as investors reacted to slightly hotter-than-expected U.S. consumer inflation report, even as Canada’s data largely remained in line with expectations. Despite posting a fresh all-time high in intraday trading, the S&P/TSX Composite Index closed down 145 points, or 0.5%, at 27,054 as investor sentiment turned cautious following the inflation data release from both sides of the border.
While healthcare and utility stocks trended higher, most other sectors closed in the red, with consumer, technology, and industrials leading the declines.
Canada’s consumer price index (CPI) climbed by 1.9% in June from a year ago, up from 1.7% in May, due mainly to slower declines in gasoline prices and firmer costs for durable goods like vehicles and furniture. In the U.S., consumer prices rose 2.7% year over year in June, up from 2.4% in May, raising concerns that inflation could be more persistent than expected and may delay Fed rate cuts.
Top TSX Composite movers and active stocks
Richelieu Hardware, Tamarack Valley Energy, Pason Systems, and Equinox Gold were the worst-performing TSX stocks, with each slipping by at least 2.6%.
Brookfield Renewable Partners (TSX: BEP.UN) surged by 6.3% to $37.27 per share, making it one of the top-performing TSX stocks for the day. The rally followed news of a landmark agreement with the American tech giant Alphabet’s Google to supply up to 3,000 megawatts of hydroelectric capacity in the U.S.
The Brookfield-Google deal includes $3 billion worth of contracts for two Pennsylvania facilities and is considered the world’s largest corporate clean power agreement for hydro. Investors cheered the long-term revenue visibility and strong demand from tech companies for clean energy. After the recent rally, Brookfield Renewable stock has risen 26% over the last three months.
Energy Fuels, Orla Mining, and Badger Infrastructure Solutions were also among the top gainers on the Toronto Stock Exchange as they rose by at least 3.8% each.
Based on their daily trade volume, TD Bank, Canadian Natural Resources, Cenovus Energy, TC Energy, and Enbridge were the five most active stocks on the exchange.
TSX today
West Texas Intermediate crude oil futures prices traded on a mixed note in early trading on Wednesday. At the same time, precious metals prices edged higher amid ongoing inflation concerns and trade uncertainty. Given these mixed signals from the commodity markets, the TSX could open flat today.
While no major domestic economic releases are due, Canadian investors may want to closely monitor the U.S. wholesale inflation data this morning as it could further influence interest rate expectations and market direction.
Market movers on the TSX today
