Toronto stocks ended higher on Friday, lifted by energy and material stocks, recovering from choppy trading after stronger-than-expected U.S. producer price data prompted investor worries over sticky inflation in the world’s largest economy.
The Toronto Stock Exchange’s S&P/TSX composite index (.GSPTSE) was up 64.76 points, or 0.32%, at 20,407.64. The index was set to snap two consecutive weekly declines.
Data showed U.S. PPI increased 0.2% in June. On an annual basis, PPI increased 0.8% through June, while economists polled by Reuters had forecast a 0.7% rise.
U.S. consumer prices increased moderately in July at 3.2%, up from 3.0% in June, data showed on Wednesday, but core inflation continued to remain sticky, which worried investors on the Fed’s rate hike plans for the rest of 2023.
“Today’s numbers partly counter the recent trend we have seen with core inflation easing,” said Angelo Kourkafas, investment strategist at Edward Jones Investments. “They didn’t necessarily provide the confidence that investors were hoping for.”
The S&P 500 and the Nasdaq Composite fell to post their second straight weekly losses, as hotter-than-expected U.S. producer prices data pushed Treasury yields higher and sank rate-sensitive megacap growth stocks.