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TSX Declines as Canadian Inflation Accelerates; Lithium Americas Loss Narrows

Published 2023-05-16, 11:48 a/m
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By Ketki Saxena

Investing.com -- The TSX tumbled today, experiencing its worst day in three weeks as Canadian consumer inflation unexpectedly rose in April for the first time in 10 months, pressuring rate-sensitive sectors such as financials, technology, and real estate. The materials sector was the biggest drag on TSX; this decline can be attributed to weak base- and precious-metal prices.

Wall Street was also pressured by mixed economic data including retail sales, weak results from Home Depot (NYSE:HD), and ongoing uncertainties over debt ceiling negotiations in Washington that kept equity traders on the sidelines.

The commodity heavy Canadian index was also pressured by crude prices on weaker-than-expected Chinese economic data although a bullish global demand forecast from the International Energy Agency limited losses.

The Biggest Stories on Bay Street

Teck Resources (TSX:TECKa) Ltd saw its shares fall after Glencore (LON:GLEN) expressed that it had little interest in purchasing the miner's coal business as a standalone unit.

Lithium Americas Corp (TSX:LAC) shares rose after reporting a significantly narrower first-quarter loss, supported by gains from an earlier investment made by General Motors Co (NYSE:GM).

Canadian Stocks Moving Markets Today

Top Gainers:

  • Lithium Americas Corp (TSX:LAC)
  • Centerra Gold (TSX:CG)
  • Converge Technology Solutions Corp (TSX:CTS)

Top Losers:

  • Seabridge Gold (TSX:SEA)
  • Equinox Gold (TSX:EQX)
  • IAMGold Corporation (TSX:IMG)

In Canadian Economics

According to a report by Statistics Canada, annual consumer inflation increased due to higher rental and mortgage interest costs. Canada's inflation rate surged to 4.4% year-on-year (YoY) in April, marking the first rise in headline inflation since June 2022. The increase outpaced the 4.1% gain forecasted by economists and exceeded March's 4.3% figure.

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