S&P 500 — US Large Cap Index
FTSE 100 — UK Blue Chips
Euro Stoxx 50 — Eurozone Leaders
DAX 40 — German Equities
CAC 40 — French Market Index
Nikkei 225 — Japan Benchmark
Hang Seng — Hong Kong Index
Shanghai Composite — China Mainland
ASX 200 — Australian Market
TSX Composite — Canada Index
Nifty 50 — India Large Cap
STI Index — Singapore Market
KOSPI — South Korea Index
Bovespa — Brazil Equities
JSE Top 40 — South Africa Index
IPC Index — Mexico Market
Canadian CPI YoY: 3% (Forecast 2.9%, Previous 2.8%). Canada’s headline inflation accelerated to 3% in July, slightly above expectations, mainly because higher Middle East tensions pushed gasoline prices sharply higher. USDCAD weakens after the data.
- Gasoline prices rose 25.7% year over year, up from 20.5% in June, while CPI excluding gasoline stayed much softer at 2.2%, suggesting energy costs have not yet spread broadly across the economy.
- Core inflation remained subdued, with the Bank of Canada’s preferred measures averaging about 1.95%, still below the 2% target.
- Other inflation pressures came from travel tours and airfares, which rose strongly amid World Cup demand and higher jet fuel costs.
- Grocery inflation eased to 3.1% from 3.9%, while shelter inflation slowed to 1.3%, its weakest pace since May 2020.
- The inflation report comes alongside firmer economic data, including a 6.4% unemployment rate, strong job creation and preliminary GDP growth of 3.4% annualized in Q2, which may keep the Bank of Canada cautious despite soft core inflation.
Source: XTB Research, Statiscis Canada, Macrobond
Source: xStation5
