By Ketki Saxena
Investing.com -- The TSX traded flat this afternoon, weighed down by financials even as Wall Street rose after cooler-than-expected US CPI data. The reading raised hopes that the Federal Reserve will dial down its campaign of aggressive rate hikes.
The CPI data comes a day before a monetary policy announcement from the US Federal Reserve, with investors hoping the central bank will ease its aggressive approach to tightening as inflation eases. Markets expect a 50 bps move tomorrow.
The commodity-heavy Canadian index gained some support from crude prices as Fed expectations pared back. Crude prices also continued to gain support from the Chinese reopening, Russia’s threat to cut production, and the still ongoing outage on the Keystone pipeline.
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The Shaw-Rogers hearing will hold closing arguments today before the Competition Tribunal, as it decides whether it will allow the $26-billion merger of Rogers Communications Inc (TSX:RCIa). and Shaw Communications to go ahead. The Competition Bureau blocked decided the deal's approval on the basis that it would materially decrease competition in the Canadian telecom market, resulting in higher cellphone bills and poorer service.
Bank of Montreal (TSX:BMO) will raise about $3.15 billion in a public offering and a concurrent private placement of shares, following a requirement by the federal banking regulator for big banks to buffer up their capital. BMO will issue and sell 11,805,000 common shares at a price of $118.60 per share for total gross proceeds of $1.40 billion. The money will be used to align BMO’s capital position with the increased regulatory requirements and for general corporate purposes.
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In Canadian Economics
Royal LePage forecasts a 2% dip in the price of a single-family home by the end of 2023, with the average price expected to fall to $781,256. Condominium prices are expected to fall 1% to $568,933 over the same period. The Canadian Real Estate Association, in comparison, forecasts a 0.2% increase in 2023, as Canadian house prices begin to stabilize following aggressive policy tightening and rate increases by the Bank of Canada this year that have weighed on housing market activity and prices.