FX.co ★ TSX Under Pressure After Inflation

On Tuesday, the S&P/TSX Composite Index experienced a slight decline of approximately 0.2%, falling below the 29,400 threshold as investors processed the latest inflation figures, which were softer than anticipated, ahead of the Bank of Canada's monetary policy announcement scheduled for tomorrow. Canada's year-over-year Consumer Price Index (CPI) increased to 1.9% in August, up from 1.7% in July, which was below the projected 2% and marked the fifth straight month of remaining under the Bank of Canada's 2% target. Meanwhile, the trimmed-mean core CPI, preferred by the Bank as a measure of fundamental inflation, decreased to 3.0% in August from 3.1% in July, aligning with market predictions. Although investors still anticipate the BoC to initiate interest rate cuts, expectations for the magnitude of these reductions through the rest of 2025 have been adjusted. Key sectors affecting the index included major mining companies, particularly Wheaton Precious Metals, which declined over 1.2%, alongside tech and financial sectors sensitive to rate changes. Conversely, rising oil prices for the third consecutive session provided some support for energy producers.