Canadian stocks started the new week on a negative note as slightly hotter-than-expected domestic consumer inflation data and ongoing geopolitical uncertainties took a toll on investor sentiment by dimming the possibility of near-term interest rate cuts by the Bank of Canada. The S&P/TSX Composite Index fell 62 points, or 0.2%, on Monday to settle at 36,668, marking its second consecutive declining session after its recent record-setting rally.
Even as surging commodity prices drove mining and energy stocks higher, sharp declines in most other key market sectors, including technology, consumer staples, and healthcare, pressured the TSX benchmark.
Latest inflationary trends in Canada
Statistics Canada reported that the Consumer Price Index (CPI) rose 3% year over year in July, accelerating from 2.8% in June. The hotter headline inflation reading appeared to temper expectations for near-term monetary policy easing.
Still, the underlying figures showed some improvement, as inflation excluding gasoline remained steady at 2.2% for a third consecutive month while grocery inflation eased to 3.1% from June’s 3.9%.
Top TSX Composite movers and active stocks
TerraVest Industries, Lithium Americas, Altus Group, and Endeavour Silver were the worst-performing TSX stocks for the day, with each plunging by at least 4.7%.
Shares of Perpetua Resources (TSX:PPTA) were also among the bottom performers on the Toronto Stock Exchange, as they slipped by 3.4% to $33.79 apiece. This selloff in PPTA stock came after the mineral exploration firm announced its second-quarter results.
Last quarter, Perpetua’s net loss widened sharply to US$97.5 million from US$6 million a year ago, mainly due to higher exploration and pre-development spending ahead of a final investment and construction decision. On the brighter side, the company ended the quarter with US$574.2 million in unrestricted cash and continued advancing its Stibnite Gold Project. Despite these positive developments, the sharply wider quarterly loss weighed on investor sentiment and pressured PPTA stock.
Despite broader market weakness, Spartan Delta, Montage Gold, International Petroleum, and Vermilion Energy climbed by at least 4.7% each, making them the day’s top-performing TSX stocks.
Based on their daily trade volume, Canadian Natural Resources, Enbridge, Whitecap Resources, Brookfield, and Telus were the five most active stocks on the exchange.
TSX today
Crude oil prices were largely mixed in early trading on Tuesday, but metals prices across the board trended lower, which could weigh on TSX mining stocks at the open today.
With no major economic releases due this morning, Canadian investors will continue to monitor Middle East tensions, especially developments around the Strait of Hormuz. The 60-day U.S.-Iran negotiation period expired Monday without a broader deal, even as Iran said it was nearing an agreement with Oman on shipping routes.
However, tensions escalated after U.S. president Donald Trump threatened military action against Oman if it hindered U.S. efforts to reopen the strait. These developments could keep crude prices and TSX energy stocks volatile today.
Market movers on the TSX today
