Canada’s main stock index moved higher at open on Wednesday, while the U.S. consumer prices data for August showed the biggest monthly increase in more than a year, fueling worries that interest rates will remain higher for longer.
The TSX gained 14.89 points to open Wednesday at 20,237.97.
The Canadian dollar inched up 0.02 cents at 73.80 cents U.S.
The TSX Venture Exchange recovered 4.58 points to 581.37.
Seven of the 12 TSX subgroups were lower, with information technology and communications each down 0.7%, while health-care lost 0.5%.
The five gainers were led by consumer discretionaries, up 0.7%, financials, up 0.4%, and utilities, ahead 0.3%.
Stocks were little changed Wednesday as traders absorbed a hotter-than-expected August core inflation print.
The Dow Jones Industrials lost 27.01 points to kick off the midweek session at 34,618.98.
The S&P 500 index dipped 3.76 points to 4,458.14.
The NASDAQ index handed over 16.41 points to 13,757.20.
August consumer price index rose 0.6% for the month, and was up 3.7% from a year ago. Economists surveyed by Dow Jones were looking for respective increases of 0.6% and 3.6%.
However, core CPI, which excludes volatile food and energy, increased 0.3% and 4.3% respectively, against estimates for 0.2% and 4.3%. Federal Reserve officials focus more on the core number as it provides a better indication of where inflation is heading over the long term.
Moderna shares rose more than 3% in early trading after the Centers for Disease Control and Prevention recommended updated Covid vaccine shots for all Americans ages 6 months and older.
Shares of Ford rose 1.5% premarket after UBS analyst Joseph Spak initiated research coverage with a buy rating and a $15 price target implying 21% upside.
Prices for the 10-year Treasury skidded, raising yields to 4.28% from Tuesday’s 4.27%. Treasury prices and yields move in opposite directions.
Oil prices slid four cents to $88.80 U.S. a barrel.
Gold prices faded $1.10 to $1,934.00 U.S. an ounce.