(Adds comments, details; updates prices)
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Aritzia slums on quarterly results
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Organigram gains on higher revenue forecast
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S&P/TSX composite index up 0.3%
By Shristi Achar A and Johann M Cherian
Jan 12 (Reuters) – Canada’s main stock index rose on Thursday as energy companies and gold miners rallied, while investors also cheered easing U.S inflation, adding to hopes that the Federal Reserve’s rate hike path might not be as aggressive.
At 10:27 a.m. ET (1527 GMT), the Toronto Stock Exchange’s S&P/TSX composite index was up 73.38 points, or 0.37%, at 20,098.43.
Across the border, U.S stocks opened higher after inflation data boosted bets that the Fed will slow the pace of its future interest rate hikes.
The Labor Department’s report showed U.S. consumer prices fell 0.1% last month amid declining prices for gasoline and other goods. This was the first decline in the CPI since May 2020.
“Overall it’s a positive day for commodity markets, that’s helping Canada. Because they’re a large component here, they’ll always have an influence,” said Colin Cieszynski, chief market strategist at SIA Wealth Management.
“Investors also seem to be generally responding favorably to the U.S. inflation numbers, which show inflation is still coming down,” Cieszynski added.
The energy sector led gains, up 1.3%, as crude prices rose, supported by optimism over China’s demand outlook and hopes of slower Fed rate hikes.
Gold miners added to gains by 0.5%, as spot gold prices rose on a weaker dollar.
The materials sector, which includes precious and base metals miners and fertilizer companies, rose 0.4%
Energy and materials stocks form almost 31% of the index.
Canada’s benchmark index had outperformed the S&P 500 index last year on the back of gains in commodity-inclined stocks such as oil producers and gold miners, falling 8.6% in 2022 compared with a 19.4% slump in the U.S. peer.
In company news, Organigram Holdings jumped 5.9% as the cannabis producer forecast higher revenue for 2023.
Luxury fashion design house Aritzia Inc slumped 10.1% after the company reported third-quarter results. (Reporting by Shristi Achar A and Johann M Cherian in Bengaluru; Editing by Maju Samuel)