FX.co ★ TSX Declines Ahead of BoC

On Tuesday, the S&P/TSX Composite Index declined by 0.4%, settling at 29,400, as investors processed inflation figures that fell short of expectations, ahead of the Bank of Canada's policy announcement scheduled for tomorrow. The annual Consumer Price Index (CPI) in Canada increased to 1.9% in August, up from 1.7% in July, which was lower than the anticipated 2.0% and marked the fifth month in a row below the Bank of Canada's target midpoint of 2%. The trimmed-mean core CPI, the central bank's favored measure for underlying inflation, decreased to 3.0% in August from July's 3.1%, matching predictions. Although market participants still anticipate the Bank of Canada to initiate a series of policy easings, they have reduced expectations regarding the magnitude of interest rate cuts through the end of 2025. Notably, major mining companies were among the most significant detractors, with Wheaton Precious Metals experiencing a 2.4% decline. Additionally, sectors sensitive to interest rate changes, such as technology and finance, also saw notable losses. On the other hand, energy producers provided some relief as rising oil prices continued their upward trend for a third consecutive session.