The S&P/TSX Composite Index inched higher to trade above 36,500, extending its recent run of record highs. In the US, CPI inflation eased to 3.4% in July from 3.5%, matching market expectations. Together with softer July labor market data, the in-line inflation print strengthened expectations that the Federal Reserve will hold off on further rate hikes, supporting credit-sensitive North American equities.
In Canada, the Bank of Canada is widely expected to leave its policy rate unchanged at its September meeting.
Major banks advanced, with RBC, TD Bank, and BMO gaining more than 0.5%, while CIBC and Scotiabank climbed close to 1%. Most miners also moved higher alongside rising gold prices, with Agnico Eagle and Barrick adding more than 1.5%. Franco-Nevada, however, dropped 3% after missing earnings estimates.
Constellation Software slumped nearly 7% after reporting revenue slightly below forecasts, despite beating EPS expectations. Hydro One rose 2% on stronger profit, while Metro slipped 2% after posting weaker adjusted earnings for its fiscal third quarter.
