U.S. Inflation Report Hurts Canada Shares
Canada stocks closed solidly lower as a higher than expected U.S. January Consumer Price Index was seen as limiting the Fed's ability to ease rates further, and triggered fears of inflation without growth -- the dreaded "stagflation" of the early 1970s. The TSE 300, which fell 223 Tuesday, dropped 176.58 as shares of industrial products, utilities and financial services fell. Merchandising was the sole higher subindex. Breadth was 529-744 negative. Government of Canada bonds were confined in a tight range. A selloff in equities supported the market, but the technical picture was weak. The March Canadian dollar was higher at 65.12 cents vs. the U.S. dollar.
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