TSX Withstands Rate Hike Jitters -- Canadian Commentary

(RTTNews) - Canadian stocks were up slightly yet again Thursday amid a flurry of economic news from both sides of the border.

The TSX Composite Index was up 31.70 points to 16,191.41 at last check.

On the corporate front, Toronto's Metrolink has cut its train order from Bombardier (BBD.B.TO) by more than half. BBD shares were up 0.6 percent.

France's Alstom will build light rail transit cars in Toronto, it was also announced.

Sun Life Financial Investment Services (SLF.TO) will pay $1.7 million fine in an OSC settlement.

In economic news, Canada's the annual inflation rate accelerated to 2.1 percent last month to reach its highest mark in nearly a year.

Analysts say the Bank of Canada may raise interest rates in the first quarter of 2018 if inflation remains above the BoC's 2 percent target.

"With economic momentum appearing to hold up into the fourth quarter … the case for the Bank of Canada to follow the Federal Reserve in hiking interest rates is building," James Marple, senior economist at TD Bank said. "Don't be surprised if it comes sooner rather than later."

Canadain retail sales rose 1.5% to $49.9 billion in October. Higher sales at new car dealers were the main contributor to the gain. Excluding sales at motor vehicle and parts dealers, retail sales increased 0.8%.

Economic activity in the U.S. unexpectedly grew at a slightly slower than previously estimated rate in the third quarter, according to a report released by the Commerce Department on Thursday.

The report said real gross domestic product surged up by 3.2 percent in the third quarter compared to the previously estimated 3.3 percent jump. Economists had expected the pace of growth to be unrevised.

Suggesting solid economic growth will continue into the first half of 2018, the Conference Board showed a slightly bigger than increase by its index of leading U.S. economic indicators in the month of November.