Canada’s main stock index rose on Thursday, lifted by strength in energy stocks after oil prices surged, while Brookfield Asset Management topped the index on plans to spin off its asset management unit at a $100 billion valuation.
At 9:49 a.m. ET (14:49 GMT), the Toronto Stock Exchange’s S&P/TSX composite index was up 60.46 points, or 0.28%, at 21,664.65.
Brookfield Asset Management jumped 8% after it said it is considering spinning off its asset management unit at a valuation of $70 billion to $100 billion, according to a letter sent to shareholders.
The energy sector rose the most, up 1.3%, tracking gains in crude prices, as investors awaited the outcome of U.S.-Iran nuclear talks that could add crude supplies quickly to global markets.
Meanwhile, U.S. indexes took a hit after data showed U.S. consumer prices rose solidly in January, the biggest annual jump in 40 years, fueling speculation for a 50 basis points interest rate hike from the Federal Reserve next month.
“Today’s inflation report puts additional pressure on the Fed to tighten aggressively at its next meeting in March,” said Silvia Dall’Angelo, Senior Economist at Federated Hermes.
“While wage inflation has picked up in recent quarters, it has been outstripped by consumer price inflation, implying that consumers are worse off in real terms compared to before the crisis.”
Among stocks, business jet maker Bombardier gained 1.1% after it said it would increase production of its strongest-selling aircraft and forecast higher deliveries, after reporting an adjusted quarterly profit.
Canada Goose Holdings Inc slumped 19.4% after it cut its full-year revenue and profit forecast, as Omicron-related restrictions dampen demand.