FX.co ★ Canadian Stocks Climb Off Early Lows But Extend Losing Streak

After experiencing a slump early in the session, Canadian stocks made a mild recovery on Tuesday but generally ended the day at a decline.

The key S&P/TSX Composite Index dropped 97.33 points or 0.5%, landing at 21,642.87, having slumped by as much as 0.9% in early trade. This is the lowest intraday level in over a month.

The Index further extended its recent pattern of losses, now standing at five consecutive sessions, despite achieving a record closing high the previous Tuesday.

The early slump in Bay Street was influenced by lingering concerns regarding the future of interest rates both domestically and in the United States.

Prior to market opening, Statistics Canada reported an increase in the annual consumer price growth rate, creeping up to 2.9% in March from 2.8% in February. Three key factors contributed to this slightly elevated year-over-year growth— a faster increase in gasoline prices observed in March compared to February. Excluding gasoline, the annual consumer price growth rate showed a slight decrease in March, slipping from 2.9% to 2.8%.

Governor of the Bank of Canada, Tiff Macklem, later suggested that the data could be indicative of an ongoing reduction in underlying inflationary pressures, signaling positivity for the Canadian economy's trajectory.

Macklem's comments were offered as part of a moderated discussion with Jerome Powell, Federal Reserve Chair, who suggested that U.S. interest rates are likely to remain heightened for an extended period due to a "lack of progress" towards achieving the central bank's inflation target.

On the day, stocks from interest rate-sensitive utilities demonstrated significant weakness, whereas technology stocks made a noticeable surge.