FX.co ★ TSX Aims at Fresh Record High

On Tuesday, the S&P/TSX Composite Index advanced approximately 0.3%, surpassing the 26,020 mark, as investors resumed trading activities after the Victoria Day break. This surge comes amidst their analysis of Canada's Consumer Price Index (CPI) for April and the repercussions of Moody's downgrade of US sovereign debt to Aa1 on May 16. The headline inflation rate declined to 1.7% year-over-year, marking a seven-month low. However, the Bank of Canada's trimmed-mean core CPI unexpectedly rose to 3.1%, its highest level in thirteen months, highlighting persistent inflationary pressures and reducing the likelihood of imminent interest rate cuts. Furthermore, discussions between Vice President Vance and Prime Minister Carney in Rome, concurrent with the G7 meeting, fostered optimism for potential US tariff alleviations, alleviating a significant concern for Canada's export-dependent resource and industrial sectors. In the stock market, the materials sector saw gains from companies like Agnico Eagle, Wheaton Precious Metals, Barrick Gold, and Franco-Nevada, which rose between 1.8% and 2.9%. This growth was fueled by safe-haven investments in gold amid ongoing US fiscal challenges, while bank stocks also experienced an uptick.