FX.co ★ Canadian Market Moderately Lower As Energy Stocks Fall

Despite soft inflation data raising prospects for another rate cut by the Bank of Canada, Bay Street is struggling, weighed down by losses in the energy sector due to declining oil prices.

As of a few minutes past noon, the benchmark S&P/TSX Composite Index has fallen 98.79 points, or 0.43%, to 23,017.60.

Statistics Canada reported that the inflation rate dropped to 2.5% in July, down from 2.7% the previous month. The Consumer Price Index (CPI) rose by 0.4% in July over the previous month. Core consumer prices—excluding volatile items—increased by 1.7% in July year-over-year, easing from 1.9% in June.

The Energy Capped Index is down by 2.1%, with Cenovus Energy (CVE.TO) declining by 3.3%. Other energy stocks such as Meg Energy (MEG.TO), Baytex Energy (BTE.TO), Ces Energy Solutions (CEU.TO), Veren Inc (VRN.TO), Tamarack Valley Energy (TVE.TO), Suncor Energy (SU.TO), Precision Drilling Corp (PD.TO), Canadian Natural Resources (CNQ.TO), Imperial Oil (IMO.TO), and Vermilion Energy (VET.TO) are down between 2% and 3%.

Gran Tierra Energy Inc (GTE.TO) is plunging more than 9%. Gran Tierra Energy and i3 Energy Plc have reached an agreement on the terms of a recommended and final cash-and-share offer, under which Gran Tierra will acquire the entire issued and to-be-issued share capital of i3 Energy.

Bombardier Inc (BBD.B.TO) is down 2.5%, with Kinaxis Inc (KXS.TO), Dollarama Inc (DOL.TO), TerraVest Industries (TVK.TO), and Colliers International (CIGI.TO) also experiencing notable declines.