(Reuters) – Canada’s main stock index edged higher on Tuesday as the country’s annual inflation rate touched a three-year low fueling bets for a June interest rate cut, while a sell-off in healthcare shares kept the gains in check.
At 10:13 a.m. ET (14:13 GMT), the Toronto Stock Exchange’s S&P/TSX composite index was up 75.12 points, or 0.33%, at 22,540.49.
Canada’s annual inflation rate slowed to 2.7% in April, and core measures continued to ease, bringing it closer to the Bank of Canada’s 2% target.
“There is no longer any question about the trajectory, and the Bank of Canada is out of excuses to dither and wait for further confirmation to cut at the June meeting,” said Kyle Chapman, FX markets analyst at Ballinger Group.
Money markets have now increased their bets for a rate cut on June 5 to almost a coin toss from 39% before the data came out. [0#BOCWATCH]
…
