FX.co ★ Canadian Market Extending Recent Gains, On Course To Scale New High

The Canadian market is poised to reach a new all-time high on Thursday as investors enthusiastically acquire stocks across various sectors, driven by optimism surrounding a potential interest rate cut from the Federal Reserve. This sentiment follows data revealing a decline in U.S. consumer price inflation.

Prominent gains have been observed in real estate, communications, energy, utilities, materials, and consumer discretionary stocks.

The benchmark S&P/TSX Composite Index has surged 129.03 points, or 0.58%, reaching 22,479.26 shortly after noon.

According to the latest report from the U.S. Labor Department, the consumer price index (CPI) dipped by 0.1% in June, following a flat reading in May. Economists had anticipated a 0.1% uptick in consumer prices.

When excluding food and energy prices, core consumer prices rose by 0.1% in June, after a 0.2% increase in May. Core prices were projected to rise by another 0.2%.

The report also highlighted that the annual rate of consumer price growth decelerated to 3% in June from 3.3% in May. This was slightly below economists' expectations of a slowdown to 3.1%. The annual core consumer price growth rate also eased to 3.3% in June from 3.4% in May, contrary to projections which anticipated no change.

The Real Estate Capped Index climbed 2.31%, while the Communication Services Capped Index rose 1.65%. Indexes tracking the energy, utilities, consumer discretionary, and materials sectors experienced gains of 1 to 1.25%.

MTY Group Inc (MTY.TO) witnessed a remarkable surge of over 10%. The company announced a second-quarter net income of $27.3 million or $1.13 per diluted share, a 10% decline from the previous year's net income of $30.4 million or $1.24 per diluted share in the same quarter.

Other noticeable performers included BRP Inc (DOO.TO), Dayforce Inc (DAY.TO), West Fraser Timber (WFG.TO), Colliers International (CIGI.TO), Sprott Inc (SII.TO), FirstService Corporation (FSV.TO), and Restaurant Brands International (QSR.TO), each recording gains between 2.3% and 4%.

Furthermore, Canadian Pacific Kansas City (CP.TO), RB Global (RBA.TO), Fairfax Financial Holdings (FFH.TO), CGI Inc (GIB.A.TO), TFI International (TFII.TO), and Franco-Nevada Corporation (FNV.TO) also exhibited significant upward momentum.

Conversely, Coveo Solutions (CVO.TO) plunged nearly 17%, while Ero Copper (ERO.TO) and Celestica Inc (CLS.TO) shed 4% and 3.4%, respectively. Additionally, Teck Resources (TECK.A.TO), Kinaxis Inc (KXS.TO), and Alimentation Couche-Tard (ATD.TO) recorded declines ranging from 1.4% to 1.7%.