Canadian inflation falls to 2%

Tuesday saw August’s inflation rate in Canada fall to 2.0%, hitting the Bank of Canada’s target and signaling that interest rates will fall further. This news comes on the eve of the U.S. Fed’s decision on American rates, widely expected to be cut by 25 or even 50 basis points on Wednesday. Markets rallied to new highs in the morning, but faded in the afternoon to close modestly negative. The TSX sank 0.24% as only energy and two other sectors gained. Staples and industrials led the laggards.

Major movers: Canfor 5.63%, Loblaw -3.19%, New Gold -3.05% while the most-active were CNQ up 1.71% and Cenovus 1.61%. Gold declined US$14 to US$2,358 while WTI ticked up 1.5% to US$71.35.

The S&P shed three points, the Dow slipped by 34 while the Nasdaq gained 23. The U.S. 10-year yield sank to a new 52-week low of 3.644%. Key names: HP 5.65%, Accenture -4.81%, American Airlines 2.64%, Intel 2.42% and Nvidia -1.3%. Bitcoin rose 2.9% to US$59,740.

🌲 Canfor Corp (CFP-T) +5.63%

🛒 Loblaw Companies Ltd (L-T) -3.19%

🥇 New Gold Inc. (NGD-T) -3.05%

🛢 Canadian Natural Rsrcs (CNQ-T) +1.71%

🛢 Cenovus Energy (CVE-T) +1.61%

💻 Hewlett-Packard Co (HPQ-N) +5.65%

💾 Accenture Ltd. (ACN-N) -4.81%

🛫 American Airlines Group (AAL-Q) +2.64%

💾 Intel (INTC-Q) +2.42%

💾 NVIDIA Corporation (NVDA-Q) -1.3%

🅱 Bitcoin (BTCUSD) (CRYPTO:BTC) +2.9%