Canadian stocks experienced a turbulent session on Tuesday morning, initially plunging due to unexpected inflation data and ongoing geopolitical tensions. However, the market gradually recovered, closing the day with a modest uptick.
Statistics Canada reported that the annual inflation rate climbed to 2% in October, up from a three-year low of 1.6% in September. The consumer price index increased by 0.4% from the previous month. Additionally, core inflation rose to 1.7%, an increase from 1.6% the previous month, with core consumer prices also seeing a 0.4% rise on a monthly basis, following a stagnant prior month.
The market sentiment was further dampened by geopolitical developments, as Russian President Vladimir Putin updated his country's nuclear policy. The Kremlin warned it might resort to nuclear action if faced with a conventional missile attack backed by a nation possessing nuclear capabilities.
In the stock market, materials and utilities sectors were among the leaders, contributing to the market's recovery, while consumer staples stocks showed weakness. Other sectors managed to pare back early losses.
The S&P/TSX Composite Index, which had fallen nearly 200 points, reaching 24,787.79 in early trading, eventually closed at 25,010.77, marking a gain of 33.83 points or 0.14%.
Notably, Dye & Durham (DND.TO) surged with a significant 13.2% increase. Other gainers included Celestica Inc (CLS.TO), Torex Gold Resources (TXG.TO), Agnico Eagle Mines (AEM.TO), Quebecor (QBR.A.TO), Wheaton Precious Metals (WPM.TO), Cameco Corporation (CCO.TO), and Franco-Nevada Corporation (FNV.TO), which saw gains ranging from 2% to 3%.
Further, Bombardier Inc (BBD.B.TO), Teck Resources (TECK.A.TO), Rogers Communications (RCI.A.TO), Capital Power Corporation (CPX.TO), Morguard Corporation (MRC.TO), Newmont Corporation (NGT.TO), Bank of Nova Scotia (BNS.TO), iA Financial Corporation (IAG.TO), and Kinaxis Inc (KXS.TO) recorded increases of 1% to 2%.
Conversely, Mty Food Group (MTY.TO), Molson Coors Canada (TPX.B.TO), Boyd Group Services (BYD.TO), George Weston (WN.TO), Interfor Corporation (IFP.TO), Finning International (FTT.TO), and Magna International (MG.TO) saw declines ranging from 2% to 5%.
