TORONTO — Canada’s main stock index eked out a gain Thursday thanks to energy and base metals, while U.S. stock markets fell, though they managed to pare back deeper losses from the morning.
Markets were rattled in the morning after fresh economic data presented the possibility of a “worst-case scenario” — that inflation could remain sticky even as interest rates weigh on growth, said Macan Nia, co-chief investment strategist at Manulife Investment Management.
The data suggested the U.S. economy’s growth slowed during the first three months of 2024 to a 1.6-per-cent annual rate from 3.4 per cent at the end of 2023, but also said inflation was hotter during those three months than economists forecast.
“It introduces this notion … of this stagflationary environment, which is the worst of both worlds,” said Nia.
The S&P/TSX composite index closed up 11.66 points at 21,885.38.
In New York, the Dow Jones…
