Canada’s main stock index fell on Thursday after hotter-than-expected U.S. inflation data tempered expectations of an early rate cut, while Aritzia shares jumped after upbeat quarterly results.
At 10:16 a.m. ET, the Toronto Stock Exchange’s S&P/TSX composite index was down 211.55 points, or 1.01%, at 20,777.87.
Across the border, the main Wall Street indexes were also in the red after data showed U.S. consumer prices increased more than expected in December, casting doubts on the likelihood of a rate cut by the Federal Reserve in March.
“Most people are in agreement that this slightly warmer inflation data is going to limit the Federal Reserve in terms of rate cuts,” said Allan Small, senior investment advisor at Allan Small Financial Group with iA Private Wealth.
“They’re obviously not going to cut as soon as people would like, and it’s quite possible they’re not going to cut as many times.”
Heavily weighted financials…
