FX.co ★ TSX Renews Record High

The S&P/TSX Composite index rose by 0.3%, reaching a new all-time high of 26,056 on Tuesday, after a streak of ten consecutive gains. This upward trend was seen as investors returned after the holiday, analyzing Canada's April Consumer Price Index (CPI) figures and the consequences of Moody's recent decision on May 16 to downgrade US sovereign debt to Aa1. Headline inflation in Canada slowed to a 1.7% increase year-over-year, marking the weakest rate in the past seven months. However, the Bank of Canada's trimmed-mean core CPI showed an unexpected rise to 3.1%, the highest in thirteen months, highlighting ongoing inflationary pressures and reducing the likelihood of imminent interest rate cuts. High-level trade discussions between US Vice President Vance and Canadian Prime Minister Carney in Rome, in conjunction with dialogues at this week’s G7 finance ministers' meeting, have renewed optimism for potential US tariff reductions. In the stock market, material sector companies, including Agnico Eagle, Wheaton Precious Metals, and Barrick Gold, saw a jump in their shares by 4.3% to 5.3%, driven by safe-haven flows into gold amidst US fiscal challenges. Meanwhile, major banks also experienced slight gains. In contrast, Shopify's stock declined by 4.4%.