The Canadian market is demonstrating strong positive momentum this Tuesday morning, driven by soft inflation data that has spurred robust buying in several sectors. The S&P/TSX Composite Index, reaching a new record high, appears set to surpass the 23,000 milestone.
Technology stocks are experiencing a significant surge, with materials and consumer discretionary sectors also seeing notable gains.
The S&P/TSX Composite Index, having climbed to 22,932.95, stands at 22,920.33—up by 168.65 points or 0.74%—about half an hour before noon.
The Information Technology Capped Index is up nearly 2.5%, led by Shopify Inc. (SHOP.TO), which has soared 8.1% following an upgrade to "buy" from BofA Global Research.
Other notable technology sector performers include Bitfarms (BITF.TO), rising 5.5%, and Coveo Solutions (CVO.TO), climbing 4.5%. Celestica Inc. (CLS.TO), Converge Technology Solutions (CTS.TO), Quarterhill (QTRH.TO), Lightspeed Commerce (LSPD.TO), Docebo Inc. (DCBO.TO), Computer Modelling Group (CMG.TO), and CGI Group Inc. (GIB.A.TO) have also gained between 1.5% and 3%.
Materials stocks are on the rise, boosted by strong metal prices. First Majestic Silver Corp. (AG.TO), MAG Silver Corp. (MAG.TO), Novagold (NG.TO), Pan American Silver Corp. (PAAS.TO), Iamgold (IMG.TO), Silvercrest Metals (SIL.TO), Wheaton Precious Metals (WPM.TO), Fortuna Silver Mines (FVI.TO), B2Gold Corp. (BTO.TO), and Eldorado Gold (ELD.TO) have increased between 3% and 5%.
In the consumer discretionary sector, Gildan Activewear (GIL.TO), Restaurant Brands International (QSR.TO), Sleep Country Canada Holdings (ZZZ.TO), Spin Master (TOY.TO), and BRP Inc. (DOO.TO) have risen between 1.7% and 2.3%.
According to Statistics Canada, the annual inflation rate in Canada decreased to 2.7% in June from 2.9% the previous month, matching a three-year low recorded in April.
Canadian consumer prices dipped by 0.1% from the previous month in June, contrary to projections of a 0.1% increase. This marks the first monthly decrease in consumer prices for the year.
Core inflation in Canada fell by 0.1% month-over-month in June, following a 0.6% increase in May. Core consumer prices rose by 1.9% in June compared to the same month the previous year, slightly up from 1.8% in May.
Additionally, data from the Canada Mortgage and Housing Corporation indicated that housing starts in Canada declined by 9% month-over-month to 241,672 units in June.
