Energy and materials stocks are performing strongly in the Canadian market, which is experiencing a moderate uptick on Thursday afternoon. However, the gains are somewhat tempered by September’s U.S. consumer price data, which exceeded expectations and consequently reduces the likelihood of further significant interest rate reductions by the Federal Reserve.
As of a recent update, the S&P/TSX Composite Index, after hitting a new all-time high of 24,303.09 earlier, has increased by 18.94 points, or 0.08%, standing at 24,243.84.
The Energy Capped Index has risen by 2.3%, driven by heightened oil prices amidst concerns over potential supply interruptions due to Hurricane Milton and ongoing tensions in the Middle East. Companies such as Kelt Exploration, Arc Resources, Athabasca Oil Corp, Headwater Exploration, Suncor Energy, Whitecap Resources, Imperial Oil, MEG Energy, and Tourmaline Oil Corp are seeing gains ranging from 2.5% to 4%.
Within the materials sector, K92 Mining Inc is surging by nearly 13%, while Torex Gold Resources, Iamgold Corp, Calibre Mining Corp, and Orla Mining have advanced by between 6.5% and 8%. Aya Gold & Silver, Pan American Silver Corp, First Majestic Silver Corp, MAG Silver Corp, Kinross Gold, and SSR Mining are also seeing increases of 4% to 6%.
Boralex Inc. announced its acquisition of the Sallachy Wind Farm project, which is yet to be constructed, from the German wind developer WKN, a subsidiary of the PNE Group. Boralex's shares have dipped by approximately 0.4%.
Data from the Labor Department indicates that the consumer price index rose by 0.2% in September, consistent with the increase in August, surpassing economists' expectations of a 0.1% rise.
Additionally, core consumer prices, excluding food and energy, saw a 0.3% increase for the second consecutive month, contrary to the anticipated 0.2% rise. On an annual basis, consumer price growth slowed to 2.4% in September from 2.5% in August, whereas economists expected it to decrease to 2.3%. Conversely, the annual core consumer price growth rate rose to 3.3% from 3.2% in August, although economists had predicted no change.