Canadian Market Modestly Higher After Inflation Slows

(RTTNews) - The Canadian market is modestly higher Tuesday morning with cooler-than-expected inflation data aiding sentiment.

Real estate, consumer discretionary, healthcare and financials shares are among the prominent gainers.

Several stocks from industrials and technology sectors are also up with notable gains.

The benchmark S&P/TSX Composite Index is up 71.67 points or 0.37% at 19,658.99.

Data from Statistics Canada showed the annual inflation rate in Canada fell to 3.4% in May of 2023 from 4.4% in the previous month, the lowest since June 2021. On a monthly basis, the CPI edged 0.4% higher, following the 0.7% increase in April.

Canadian annual core inflation, which excludes food and energy costs, eased to an 18-month low of 3.7% in May 2023, down from 4.1% in April.

The somewhat soft inflation data has slightly weakened the case for a rate hike in July.

Hut 8 Mining Corp (HUT.TO), which fell sharply in the previous session, is up nearly 10% on strong volumes. Bitfarms (BITF.TO) is gaining about 6.7%.

Air Canada (AC.TO), Manulife Financial Corporation (MFC.TO) and Toronto-Dominion Bank (TD.TO) are also notably higher on impressive volumes.

TFI International (TFII.TO) is surging 7.8%. Teck Resources (TECK.B.TO) is climbing 4.5%, while Bombardier Inc (BBD.B.TO), Colliers International (CIGI.TO) and BRP Inc (DOO.TO) are up 2 to 3.5%.

West Fraser Timber (WFG.TO), Toromont Industries (TIH.TO), Magna International (MG.TO), Linamar Corporation (LNR.TO), Nuvei Corporation (NVEI.TO) and goeasy (GSY.TO) are gaining 1 to 3%.

Thomson Reuters (TRI.TO) is up nearly 1%. The company announced it will acquire Casetext, a legal startup with an artificial intelligence-powered assistant for law professionals, in a $650-million all-cash deal.

MTY Food Group (MTY.TO), Franco-Nevada Corporation (FNV.TO), Canadian Imperial Bank of Commerce (CM.TO), First Quantum Minerals (FM.TO) and Empire Company (EMP.A.TO) are down 1 to 2.5%.