TSX closes higher as CPI cools, retail sales gain
Canada’s consumer price index lost some pace while retail sales gained in the latest data, helping lift the main TSX index Thursday.
It was telecoms that led the rise though as the CRTC ruled that broadband is a ‘basic service’ but did not suggest that prices should be cut. Overall, half of the ten main sectors of the index gained with healthcare, energy, consumer staples and industrials all higher.
Wall Street slipped as the Dow failed again to break the 20,000 barrier and GDP data showed a sharp rise (3.5 per cent) for the economy in the third quarter but whole-year growth will still be weaker than any other year this decade.
European and Asian markets closed mixed.
The S&P/TSX Composite Index closed up 29.34 (0.19 per cent)
The Dow Jones closed down 23.08 (0.12 per cent)
Oil is trending higher (Brent $54.77, WTI $52.61 at 4.20pm)
Gold is trending lower (1130.50 at 4.20pm)
The loonie is valued at U$0.7408
Rate of inflation eases to 1.2 per cent
The consumer price index was at 1.2 per cent in November, easing from the 1.5 per cent of October, Statistics Canada reported Thursday.
Six of the main components saw prices rise in the 12 months to November with shelter and transport costing more while food and clothing declined. The transportation index was lower than October though as the cost of gasoline fell 1.7 per cent after rising 2.5 per cent in the previous month.
Retailers increase sales led by gasoline, general stores
Gasoline stations and general stores led the rise in retail sales in October.
Statistics Canada data shows a 1.1 per cent gain for the sector to $45 billion while sales were up 0.6 per cent in volume terms, allowing for the effects of price changes.
Retailers in 9 of the 11 subsectors saw increases and higher prices at the pumps saw gasoline stations’ sales rise 3.8 per cent.