By Ketki Saxena
Investing.com –The Toronto Stock Exchange's S&P/ TSX Composite Index was firmly in rally mode at midday, boosted by the Bank of Canada’s decision to hold interest rates at their current level of 4.5%, and a cooldown in US CPI data that had investors raising bets for a pause from the US Federal Reserve as well.
On a year-over-year basis, the headline CPI number rose 5% against economists' estimates of a 5.2% rise, while core CPI climbed 5.6% in-line with consensus estimates.
The commodity heavy Canadian index was also supported by gains in crude, supported by the CPI data and Fed bets that easied worries of recession driven demand destruction.
The Biggest Stories on Bay Street
MTY Food Group Inc (TSX:MTY). reported a Q1 profit $18.4 million, up from $16.6 million a year earlier, amounting to 75 cents per diluted share, up from 68 cents per diluted share a year earlier. Revenue at MTY more than doubled to $286.0 million for the quarter, up from $140.5 million in the same quarter last year, largely attributable to the company’s recent acquisitions of Wetzel’s Pretzels and Sauce Pizza and Wine during the quarter.
Brookfield Infrastructure (TSX:BIP_u) Partners LP has announced that it will acquire Triton International Ltd., the world’s largest owner of shipping containers, for US$4.7 billion. Brookfield will pay $85 a share, including $68.50 in cash, representing a 35% premium to Triton’s closing price on Tuesday. Including debt, the deal is worth $13.3 billion.The acquisition requires the approval of Triton shareholders and regulators, and is expected to be completed in the fourth quarter.
Cineplex Inc. says it does not expect to recover any material amount of the $1.24 billion it is owed from UK’s Cineworld Group PLC. After Cineworld reneged on a $2.18-billion deal to buy Cineplex in 2020, an Ontario court ruled in Cineplex's favour in 2021, awarding the company $1.24 billion in damages. However, little of that amount is expected to be recovered after Cineworld filed a proposed Chapter 11 bankruptcy last week, entering into a restructuring agreement with some of its lenders.
Canadian Stocks Moving Markets Today
Top Gainers:
Top Losers:
In Canadian Economics
The Bank of Canada left interest rates on hold at 4.5% for its second consecutive meeting, citing the trend of easing in inflation, and reiterating confidence that inflation will continue to slow .
As expected, the Bank reiterated that it is not confirming that the current rate hike cycle has ended, instead confirming that the Bank remains on a conditional pause, and is still prepared to increase rates if needed.