FX.co ★ TSX Closes Flat After CPI Data

The S&P/TSX Composite Index ended Monday’s session virtually unchanged at 35,702 following the release of August CPI data. Headline inflation held steady at 3.0%, in line with market expectations. The ongoing conflict in the Middle East continued to support higher energy costs, with gasoline prices surging 22.8% year-on-year. The Bank of Canada’s preferred core inflation measures—the median and trimmed-mean—were also stable, at 2.0% and 1.9%, respectively. These figures indicate that underlying price pressures remain contained, even as the BoC grows more concerned about inflation risks related to the war. Governor Macklem cautioned earlier this month that the longer the conflict endures, the greater the likelihood that elevated energy prices will filter through the broader economy. Investors largely anticipate a rate hike from the US Federal Reserve on Wednesday. Financial stocks mostly moved lower in response to rising yields. Weaker gold prices weighed on the materials sector, with Barrick and Wheaton Precious Metals each dropping 2.7%. Celestica sank 8.4%, mirroring a broad selloff in US semiconductor names.