Strong gains in the materials and financials sector helped Canada’s stock exchange recover from earlier losses today.
The TSX initially slipped into the red as investors weighed news of higher-than-anticipated inflation data.
Higher gas prices and increased costs for services such as air transportation helped push Canada’s inflation rate to three percent in July, its highest level since 2011. This raises speculation that the Bank of Canada will raise its interest rate in September to slow inflation.
The TSX ended the day 98 points higher, with healthy gains in all but two of the index’s 11 major sectors.
The inflation report pushed the Canadian dollar higher, up more than half a cent to $.07656 US.
Meanwhile, the day after posting its biggest jump since April, the Dow continued its upward momentum on Friday by ending 110 points in positive territory, while the Nasdaq inched nine points into the green.
Oil nudged up 43 cents to $65.89 US a barrel while gold had a good day, up $7.50 to $1,184 an ounce.