The Canadian stock market experienced a downturn by midday on Tuesday, primarily impacted by declines in the energy, utilities, and communications sectors. Investors are digesting the latest inflation data from Canada while also anticipating the Federal Reserve's policy announcement slated for Wednesday.
As of shortly after noon, the S&P/TSX Composite Index had decreased by 66.66 points, representing a 0.27% drop, positioning itself at 25,080.55. This followed an earlier decline to 25,008.08.
Statistics Canada reported that Canada's annual inflation rate was at 1.9% in November, slightly easing from October's 2%. On a month-to-month basis, the Consumer Price Index (CPI) remained unchanged in November.
The core inflation rate, which excludes volatile items, fell to 1.6% annually in November from 1.7% the previous month. On a monthly scale, core consumer prices saw a modest 0.1% decline in November following a 0.4% increase in October.
New home prices in Canada showed some resilience, rising 0.2% year-on-year in November, marking a recovery from the previous month's equivalent percentage drop.
In corporate news, Versa Bank (VBNK.TO) suffered an 8.5% loss, while Air Canada (AC.TO) fell by 7.7%. Companies such as Canadian Tire Corporation (CTC.TO), Bombardier Inc (BBD.B.TO), and others, including Propel Holdings (PRL.TO) and Arc Resources (ARX.TO), saw declines ranging from 2.1% to 4.5%. Russel Metals (RUS.TO), Tourmaline Oil Corp (TOU.TO), Linamar Corporation (LNR.TO), and similar entities reported losses between 1% and 1.7%.
On a positive note, Telesat Corporation (TSAT.TO) surged by 5.3%. Additionally, gains of 1% to 2.3% were seen in companies such as Aura Minerals (ORA.TO), Shopify Inc (SHOP.TO), and BRP Inc (DOO.TO), among others like Canadian Apartment Properties (CAR.UN.TO) and Enghouse Systems (ENGH.TO).
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