CANADA STOCKS-TSX rises as bond selloff eases, mining shares advance
Updates with market opening prices
By Ragini Mathur
Jan 14 (Reuters) - Canada's main stock index rose on Tuesday, supported by gains in mining shares, with investors assessing U.S. producer price data to gauge the Federal Reserve's interest rate path this year.
The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was up 0.16%, or 38.13 points, at 24574.45.
Among sectors, metal mining shares led gains, rising 1.8% as prices of gold and silver rose. The capped communications services sector declined the most, falling 3.7%.
Data showed U.S. producer prices increased moderately in December but was below forecasts.
"We have a little bit of a reprieve on the inflation front as U.S. producer prices came in a bit lower than expected, but the bigger issue here is of rising bond yields, which is not going to go away quickly," said Douglas Porter, chief economist at BMO Capital Markets.
An unexpectedly strong U.S. jobs data last week dashed expectations of rate cuts by the Fed this year, and had since triggered a sell-off in bond markets and weakness in global equities.
The Canadian 10-year benchmark yield CA10YT=RR also eased on Tuesday, but was still near its highest level since July 2024.
U.S. President-elect Donald Trump's tariff threats have also kept investors on the edge, particularly in Canada, which sends about 75% of its exports to the United States.
Sentiment may be aided by a report that said the incoming Trump administration was considering gradual tariff hikes, including a plan that could increase import duties by 2% to 5% a month.
Investors are now awaiting U.S. consumer price index data due on Wednesday, which will provide further insights into inflation trends in the U.S. and the direction of interest rates.
Among individual stocks, Fortuna Mining FVI.TO topped the index by gaining 6.4%.
Cogeco Communications CCA.TO was the biggest individual decliner, down nearly 4.8%.
(Reporting by Ragini Mathur in Bengaluru; Editing by Leroy Leo)
((Ragini.mathur@thomsonreuters.com))
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