TSX climbs on softer-than-expected US inflation data

A screen shows stock information as Canada's main stock index, the Toronto Stock Exchange's S&P/TSX composite index, rose to a record high in late morning trade in Toronto, Ontario, Canada January 7, 2021. REUTERS/Carlos Osorio/File Photo

By Khushi Singh

(Reuters) - Canada's main stock index moved higher on Wednesday, led by gains in real estate shares as softer-than-expected U.S. inflation data cemented rate cut bets for this year.

At 10:03 a.m. ET (14:03 GMT), the Toronto Stock Exchange's S&P/TSX composite index was up 3.34 points, or 0.02%, at 22,246.68.

The U.S. consumer prices increased less than expected in April, suggesting inflation resumed its downward trend at the start of the second quarter in a boost to financial market expectations for a September interest rate cut.

The rate-sensitive real estate index climbed 1% and the yield on benchmark government debt slipped, tracking its peer in the United States.

"Today's [CPI] data looks like the soft landing is continuing to play out, which should help provide some stability for equity markets that have seen a fair bit of volatility over the past month," said Josh Jamner, investment strategy analyst at ClearBridge Investments.

U.S. retail sales were unexpectedly flat last month as higher gasoline prices pulled spending away from other goods.

The information technology index edged 0.6% higher, supported by a 4.1% jump in Bitfarms and a 4.2% rise in Hut 8 Corp after the bitcoin miners reported higher first-quarter revenue. A more than 4% uptick in Bitcoin also supported the upward movement.

On the contrary, the energy sector led the sectoral losses with a decline of 1.3%, hurt by lower crude prices as the International Energy Agency trimmed its forecast

for 2024 oil demand growth, largely citing weak demand in developed OECD nations. [O/R]

Meanwhile, Canadian factory sales fell in March from February on lower sales of petroleum and coal products as well as motor vehicles.

(Reporting by Khushi Singh in Bengaluru; Editing by Shreya Biswas)