Canada’s main stock index opened higher on Tuesday, as investors cheered slowdown in country’s annual inflation rate to a three-year low that boosted bets for a June interest rate cut, while the energy shares fell tracking lower crude prices.
At 9:35 a.m. ET, the Toronto Stock Exchange’s S&P/TSX composite index was up 11.42 points, or 0.05%, at 22,476.79.
Canada’s annual inflation rate slowed to a three-year low of 2.7% in April and core measures continued to ease, data showed on Tuesday, prompting money markets to see an increased chance of a rate cut in June.
Analysts polled by Reuters had forecast inflation to cool to 2.7% from 2.9% in March. Month on month, the consumer price index rose 0.5% in April, also less than a forecast of 0.6% gain.
The April inflation figures are critical for the Bank of Canada (BoC) Governor Tiff Macklem who has repeatedly said that he would like to see more evidence of easing of prices before…
