Canadian Market Modestly Higher Despite Hot Inflation Data

(RTTNews) - The Canadian market, which very nearly fell into negative territory after an early upmove but recovered swiftly Monday morning, remains fairly well placed above the flat line around mid-afternoon, thanks to gains in energy, materials, utilities and industrials sectors.

Investors are digesting the nation's inflation data and reacting to the news about the "encouraging progress" in U.S.-Iran peace negotiations.

US Vice President JD Vance touted a "very, very good day" of negotiations Sunday between the US and Iran and denied that bombastic statements from President Donald Trump upended negotiations. Iran has agreed to admit nuclear monitors into the country, Vance added.

The benchmark S&P/TSX Composite Index was up 98.67 points or 0.28% at 34,956.01 a little while ago. The index, which climbed to 35,084.90 early on in the session, dropped to a low of 34,857.79 subsequently.

Data from Statistics Canada showed the headline inflation rate in Canada rose to 3.2% in May from 2.8% in the previous month, ahead of market expectations of 3% and the 2.8% rate from the previous month to mark the fastest inflation rate since December 2023.

The Canadian CPI rose 1% from the previous month.

Annual core inflation rate in Canada edged up to 2.2% in May from 2.1% in April.

AtkinsRealis is rising more than 7%. Transcontinental, Alamos Gold, BlackBerry, Western Forest Products, Dundee Precious Metals and Wheaton Precious Metals are up 4%-6%.

Enerflex, Aecon, Brookfield Business Partners, ATCO, Mattr Corp., TFI International, Arc Resources, Magna International, CCL Industries, Chemtrade Logistics, Imperial Oil and Richeliue Hardware are among the other prominent gainers.

Parex Resources, Descartes Systems Group, Thosom Reuters, Open Text Corporation, NovaGold Resources, Restaurant Brands International, Maple Leaf Foods, First Quantum Minerals, Aurora Cannabis, CGI Inc., Lightspeed Commerce and Canada Goose Holdings are down 2%-5%.