TSX Index Steady as Canadian CPI Moderates, Rate Cut Speculation Grows

Canada's main stock index, the S&P/TSX composite, showed mixed performance amid investor caution ahead of key inflation data and the Federal Reserve's annual Jackson Hole symposium. Inflation in Canada eased to 1.7% year over year in July, below economists' expectations, bolstering market expectations that the Bank of Canada may cut interest rates in the coming months, although a September cut remains uncertain. The TSX experienced a slight decline driven by losses in technology and metal mining sectors, while industrials and real estate sectors showed gains, partly supported by the resolution of a strike at Air Canada. On Wall Street, futures declined as major retailers including Home Depot, Target, Walmart, and TJX prepared to report earnings, with investors focusing on consumer spending trends amid a mixed inflation outlook and potential impacts from President Donald Trump's new import taxes. Oil prices slipped due to speculation about a potential end to the Ukraine war, which could lift sanctions on Russian crude. Overall, markets await further catalysts from corporate earnings, central bank signals, and geopolitical developments to sustain the current bull market momentum.