The Canadian stock market is experiencing a strong uptick on Wednesday afternoon, buoyed by U.S. consumer price inflation figures that have fueled optimism regarding a potential interest rate reduction by the Federal Reserve, either in the forthcoming meeting or in March 2025.
Prominent gains are evident in the technology, real estate, financials, and healthcare sectors. Some securities from consumer staples, industrials, and materials sectors are also seeing an increase, though most other sectors remain largely stable.
The benchmark S&P/TSX Composite Index has risen by 220.35 points or 0.9%, reaching 24,808.32.
Within the technology sphere, Celestica Inc (CLS.TO) and BlackBerry (BB.TO) have increased by 4.5% and 3.3%, respectively. Sangoma Technologies (STC.TO), Shopify Inc (SHOP.TO), and Enghouse Systems (ENGH.TO) have posted gains ranging from 2.3% to 3.2%.
In real estate, Colliers International (CIGI.TO) is experiencing a significant surge of nearly 10%, while First Capital (FCR.UN.TO), Altus Group (AIF.TO), Riocan Real Estate (REI.UN.TO), Allied Properties (AP.UN.TO), and Allied Properties Real Estate (AP.UN.TO) are climbing by 1.5% to 2%.
Among financial stocks, Goeasy (GSY.TO), EQB Inc (EQB.TO), Manulife Financial (MFC.TO), Brookfield Corporation (BN.TO), IGm Financial (IGM.TO), Laurentian Bank (LB.TO), Sprott Inc (SII.TO), and Sun Life Financial (SLF.TO) are up by 2% to 3%.
Healthcare equities such as Chartwell Retirement Residences (CSH.UN.TO), Tilray Inc (TLRY.TO), and Sienna Senior Living Inc (SIA.TO) have increased by 2.6%, 1.2%, and 2%, respectively.
According to the Labor Department's latest data, U.S. consumer prices rose slightly more than anticipated in December, although the annual growth rate of core consumer prices unexpectedly declined. Specifically, the consumer price index increased by 0.4% in December, following a 0.3% rise in November, while economists had projected another 0.3% increase. Additionally, the annual growth rate of consumer prices accelerated to 2.9% in December, up from 2.7% in November, aligning with economic forecasts.
The material has been provided by InstaForex Company -
www.instaforex.com
