Canada’s main stock index closed higher on Tuesday, driven by strength in the materials and energy sectors, after softer-than-expected US inflation data eased concerns about a more aggressive stance from the Federal Reserve. Meanwhile, US forces conducted a third straight night of military strikes against Iran on Monday as President Donald Trump reinstated a blockade on Iranian shipping and proposed a 20 per cent fee to secure passage through the Strait of Hormuz.
US equities also moved higher, with the S&P 500 advancing after June inflation figures came in below expectations. However, gains were limited as investors weighed rising oil prices and a busy slate of corporate earnings reports. The Consumer Price Index (CPI) fell 0.4 per cent in June from the previous month, bringing the annual inflation rate down to 3.5 per cent. Economists surveyed by Dow Jones had expected a 0.2 per cent monthly decline and an annual rate of 3.8 per cent. The weaker inflation reading strengthened expectations that the Federal Reserve will have less need to raise interest rates later this year.
| TSX | 35,320.54 | +67.82 |  |
| TSXV | 891.70 | +10.42 | |
| CSE | 158.61 | -0.64 |  |
| DJIA | 52,508.27 | +9.63 | |
| NASDAQ | 26,107.01 | +233.83 | |
| S&P 500 | 7,543.59 | +28.25 | |
The Canadian dollar traded for 71.07 cents US compared to 70.63 cents US on Monday.
US crude futures traded US$1.71 higher at US$79.85 a barrel, and the Brent contract rose US$2.08 to US$85.38 a barrel.
The price of gold was up US$55.33 to US$4,054.21.
In world markets, the Nikkei was up 500.77 points to ¥67,743.50, the Hang Seng was up 127.01 points to HK$24,340.73, the FTSE was up 26.71 points to ₤10,525.00, and the DAX was up 32.78 points to €25,147.03.