The S&P/TSX Composite Index is up by 0.57 per cent to 20,670.82 as of 1:42 pm ET. The index’s gains slowed in September, signaling equity weakness and a flight to safe assets like bonds and cash as COVID-19 cases continue to flare up.
The rise is motivated by a 1.43 per cent gain in oil prices lifting energy stocks. This is due to a drop in U.S. crude inventories and the expectation that energy demand will rise as vaccination rates ramp up.
Energy is offsetting the impact of data showing a surge in Canada’s annual inflation rate to 4.1 per cent in August – marking an 18-year-high.
The August numbers mark the fifth consecutive month that inflation has come in above the Bank of Canada’s 3 per cent cap. Fueling this rise are somewhat abated but still surging home prices, a rebounding energy sector, and the gradual return to normal business operations across the country.
Substantiating the rise in home prices, the shelter index rose 14.3 per cent compared to August 2020, the largest yearly increase since 1987 and the fourth consecutive month of double-digit growth.
That said, Bank of Canada Governor Tiff Macklem has remained firm that short-term price fluctuations due to supply-chain disruptions should be no cause for worry.
The Canadian dollar is holding strong trading 0.2 per cent higher at US$0.7891.
The 10-year Canadian bond is up 2.3 basis points to just under 1.2 per cent.
Gold, for its part, has dipped below US$1,800 per ounce.
Market movers
Canadian National Railway is up over 2 per cent after it backed out of its US$29.6 billion offer for U.S.-based Kansas City Southern.
Technology company Fobi announced the launch of its Fobi 3.0 IoT device.
EnWave has granted an Australian cannabis company the right to use its REV drying technology.
Skylight Health Group acquired Aspire Health Concepts, a primary care group in Pennsylvania with two locations.
ESE Entertainment completed its acquisition of Digital Motorsports.
Recent capital raises gracing The Market Herald Canada’s Deal Room include MustGrow Biologics, Latin Metals and GreenSpace Brands.