The S&P/TSX Composite Index rose 0.2% to close at 35,320 on Tuesday, supported by US inflation data that eased concerns over further interest rate hikes. US consumer prices fell in June for the first time in six years, while core inflation was little changed, reducing pressure on the Federal Reserve to tighten policy.
Financials outperformed, with Royal Bank of Canada up 1%, Toronto-Dominion Bank gaining 1.2%, and Brookfield advancing 1.3%. The Bank of Canada is widely expected to leave its benchmark policy rate unchanged at 2.25% at its meeting on Wednesday.
Rising gold prices bolstered mining shares: Barrick Gold added 0.9%, and Franco-Nevada climbed 0.6%. In contrast, energy stocks declined after US President Trump dropped a proposal to levy a 20% fee on cargo transiting the Strait of Hormuz under US military protection. Canadian Natural Resources fell 1.6%, Suncor Energy lost 1%, and Imperial Oil slipped 1.6%.