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TSX: Canada’s main stock exchange was trading higher again on Thursday, extending its record-breaking run. By midday in Toronto, the S&P/TSX Composite index was up 193 points, or 0.67 percent, at 29,372.73, after closing at a record 29,179.39 the previous session. Futures for the S&P/TSX 60 also climbed, gaining 0.7 percent.
Energy and mining shares led the way. Cenovus Energy jumped nearly 5 percent after its CEO told Bloomberg the company would not raise its bid for rival oil sands producer MEG Energy. Higher U.S. oil prices earlier in the week also supported the sector. Meanwhile, elevated copper and gold prices helped boost the materials group, which includes Canada’s big metal miners.
South of the border, U.S. stocks gained ground ahead of a closely watched inflation report. The Dow Jones added 170 points, or 0.4 percent, while the S&P 500 and Nasdaq each advanced 0.4 percent. Both the S&P 500 and Nasdaq had already closed at all-time highs on Wednesday, helped by a rally in Oracle.
Investor attention now turns to the August consumer price index, due later in the session. Economists expect headline CPI to rise 0.3 percent from the previous month and 2.9 percent from a year ago. Core CPI, which excludes food and energy, is forecast to climb 0.2 percent month-on-month and 3.2 percent annually. A reading in line with expectations would reinforce bets that the Federal Reserve will cut rates at its September 17 meeting, likely by a quarter point.
Producer price data released Wednesday added to confidence that inflation pressures are cooling. August’s PPI fell 0.1 percent on the month and rose just 2.6 percent year-on-year, both below forecasts. Analysts at ING noted the figures suggest companies are holding off on passing tariff-related costs to consumers, which could help keep CPI contained.
The European Central Bank will also deliver a policy decision later Thursday, with markets widely expecting no change to rates.
In corporate earnings, Adobe is the headline act. The software giant reports after the closing bell, with investors cautious despite the company raising its full-year guidance back in June. Analysts at Vital Knowledge said Adobe still faces significant cyclical and structural challenges.
Commodities were weaker. Oil prices slipped after U.S. government data showed rising crude and gasoline inventories, raising concerns about softening demand. Brent crude fell 1.6 percent to $66.39 a barrel, while U.S. West Texas Intermediate lost 1.9 percent to $62.48. Inventories rose by 3.9 million barrels last week, compared with expectations for a 1 million barrel draw.
Gold eased slightly as traders waited for the CPI release but remained near record highs. Spot gold dipped 0.5 percent to $3,620.83 per ounce, while U.S. gold futures fell 0.6 percent to $3,658.40. The metal is still up nearly 40 percent this year, fueled by trade tensions, geopolitical conflicts, and heavy central bank buying.