CANADA STOCKS-TSX jumps as U.S. inflation data fuels hopes of pause in rate hikes
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Financials, tech drive TSX gains
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US CPI rises 0.2% in July
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Algonquin Power & Utilities falls on plans of business sale
(Updated at 10:02 a.m. ET)
By Siddarth S
Aug 10 (Reuters) - Toronto stocks gained and were set for their best day in a month on Thursday as financials and technology stocks rose after U.S. inflation data fanned hopes that the Federal Reserve was nearing the end of its rate hike cycle.
At 10:02 a.m. ET (1402 GMT), the Toronto Stock Exchange's S&P/TSX composite index was up 163.84 points, or 0.81%, at 20,439.11.
Data showed U.S. consumer prices increased moderately to 0.2% in July, matching the gain in June. On an annual basis, prices advanced 3.2% in July, while economists polled by Reuters forecast a 3.3% rise.
"That (inflation data) was a good print in the sense that it reinforces the disinflation narrative," Angelo Kourkafas, investment strategist at Edward Jones Investments.
"The big implication for the markets is that also supports the expectations that the Fed might not have to hike another time when they meet again in September."
Wall-Street indexes also rallied after inflation data.
Rate-sensitive technology stocks rose 1.8%, while heavyweight financials sector gained 1.0%.
Materials stocks, added 0.3%, helped by higher copper prices on a softer dollar and hopes of more stimulus from China after a series of weak data.
Gold prices also firmed, further supporting the materials index.
Shares of Canada's Algonquin Power & Utilities fell more than 3% after the company said it was considering a sale of its renewable energy business to reduce debt.
Among corporate results, Canadian Tire reported a drop in quarterly revenue, sending its shares down over 4%. Stock was among top losers on the benchmark index.
Shares of Manulife Financial gained nearly 2% after Canada's largest insurer reported better-than-expected quarterly profit on Wednesday, while Canopy Growth dipped over 2% after the pot-producer raised going concern doubts.
(Reporting by Siddarth S in Bengaluru; Editing by Shweta Agarwal and Arun Koyyur)
