TSX Slips Amid Hawkish BoC Outlook
The S&P/TSX Composite Index fell about 0.5% to below 36,000 on Monday as investors assessed fresh inflation data and the outlook for BoC policy. Canada’s annual inflation rate rose to 3.1% in September, its highest level in four months, driven by higher gasoline prices, but came in below market expectations of 3.2%. Despite the downside surprise, the outlook for the BoC remained tilted toward tighter policy, as policymakers flagged upside risks to inflation. Governor Tiff Macklem said on Saturday that the central bank expects to raise its quarterly inflation forecast significantly this month, following hawkish remarks last week about energy-driven price pressures. Oil prices remained elevated amid attacks on tankers in the Strait of Hormuz, keeping inflation risks in focus. Major banks declined, with RBC, BMO, and Scotiabank each falling 0.5%. Energy producers also posted losses as oil prices retreated from recent highs. Miners likewise fell as gold prices edged lower.
The S&P/TSX Composite Index fell about 0.5% to below 36,000 on Monday as investors assessed fresh inflation data and the outlook for BoC policy. Canada’s annual inflation rate rose to 3.1% in September, its highest level in four months, driven by higher gasoline prices, but came in below market expectations of 3.2%. Despite the downside surprise, the outlook for the BoC remained tilted toward tighter policy, as policymakers flagged upside risks to inflation. Governor Tiff Macklem said on Saturday that the central bank expects to raise its quarterly inflation forecast significantly this month, following hawkish remarks last week about energy-driven price pressures.
Oil prices remained elevated amid attacks on tankers in the Strait of Hormuz, keeping inflation risks in focus. Major banks declined, with RBC, BMO, and Scotiabank each falling 0.5%. Energy producers also posted losses as oil prices retreated from recent highs. Miners likewise fell as gold prices edged lower.