The Canadian market initially experienced a decline during Tuesday morning's trading session due to heightened inflation figures and increasing geopolitical tensions related to the Russia-Ukraine conflict. However, it later regained ground as several leading stocks attracted solid support from investors at lower price levels.
According to data released by Statistics Canada, the annual inflation rate in Canada rose to 2% in October, up from a more than three-year low of 1.6% recorded in the previous month. The Consumer Price Index saw a month-over-month increase of 0.4% in October.
Core inflation also experienced an uptick, with the annual core inflation rate rising to 1.7% in October from 1.6% in September. On a monthly basis, core consumer prices increased by 0.4%, following a stagnant performance in the prior month.
The market was further dampened by intensified geopolitical worries after Russian President Vladimir Putin adjusted the country’s nuclear policy. The Kremlin announced it would consider a nuclear response if faced with a conventional missile attack supported by a nuclear power.
The S&P/TSX Composite Index, which had initially slipped to a low of 24,787.79, rebounding to 24,974.40—just 2.54 points shy of the previous closing figure.
Within the market, stocks like Molson Coors Canada (TPX.B.TO), Hut 8 Corp (HUT.TO), Finning International (FTT.TO), Brookfield Infrastructure (BIPC.TO), and Boralex Inc (BLX.TO) saw declines ranging from 2% to 4%.
George Weston Limited (WN.TO) also dipped nearly 2%, despite reporting a year-over-year increase in adjusted diluted net earnings per common share of $3.57 in the third quarter, up $0.21 or approximately 6.3%.
Other stocks facing downward pressure included Calian Group (CGY.TO), Canadian Natural Resources (CNQ.TO), Badger International (BDGI.TO), Aritzia Inc (ATZ.TO), Magna International (MG.TO), Loblaw Companies (L.TO), Canadian Pacific Kansas City (CP.TO), MTY Food Group (MTY.TO), Cargojet (CJT.TO), Linamar Corporation (LNR.TO), and Stella-Jones Inc (SJ.TO), with decreases ranging from 1% to 1.7%.
Conversely, Dye & Durham (DND.TO) made significant gains, rising nearly 14%. Companies like Barrick Gold Corporation (ABX.TO), Rogers Communications (RCI.A.TO), Cameco Corporation (CCO.TO), Agnico Eagle Mines (AEM.TO), TerraVest Industries (TVK.TO), Celestica Inc (CLS.TO), Wheaton Precious Metals (WPM.TO), Methanex Corporation (MX.TO), Teck Resources (TECK.B.TO), and Franco-Nevada Corporation (FNV.TO) saw their stocks appreciate between 1.5% and 2.5%.