The S&P/TSX Composite Index slipped below 36,000 on Monday after the release of CPI data. Canada’s annual inflation rate held steady at 3.0% in August, matching market expectations. Price gains continued to be driven primarily by energy products, as the war in the Middle East disrupted a key source of global oil supply, while the core inflation measures monitored by the Bank of Canada stayed close to its target.
US-listed major banks traded lower in the pre-market, weighed down by a rebound in oil prices and expectations of a Federal Reserve rate hike on Wednesday. The financials sector was mostly in the red, with the big banks trading below the flatline.
Weaker gold prices put additional pressure on mining stocks, with Agnico Eagle and Barrick each falling about 3%, and Wheaton Precious Metals (WPM) losing 3.5%. Celestica dropped nearly 7% as investors took profits after a sharp rally triggered by a significant leadership reshuffle that promoted longtime CFO Mandeep Chawla to Group President, Global Markets, reinforcing confidence in the company’s multi-year growth strategy.
