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Element Fleet climbs on upbeat annual outlook
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Ballard Power slides on disappointing Q1 sales
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TSX down 0.06%
By Johann M Cherian May 10 (Reuters) - Canada's main stock index was flat on Wednesday, as gains in interest rate-sensitive sectors were offset by declines in commodity stocks after U.S. inflation data showed that consumer prices rose slower-than-expected last month. The U.S. Labor Department's Consumer Price Index (CPI) rose 4.9% in April, compared with expectations of a 5% increase, as per a Reuters poll, raising hopes of a rate hike pause by the Federal Reserve in June. At 10:17 a.m. ET (14:15 GMT), the Toronto Stock Exchange's S&P/TSX composite index was down 12.86 points, or 0.06%, at 20,572.87 in volatile trading session. Rate-sensitive sectors like banks , real estate and tech stocks rose between 0.2% and 0.8%. "Today's inflation data confirms expectations that last week's rate hike will prove to be the last, definitely leaving some room for the Fed to pause," said Angelo Kourkafas, investment strategist at Edward Jones Investments. However, energy lost 1.3%, tracking lower crude oil prices after a surprise rise in U.S. oil inventories, which raised concerns on likely weakening demand. Miners shed 0.7%, after a weak trade data from top-consumer China. The TSX had a strong finish in April following the sharp selloff in March triggered by the banking sector turmoil.
Equities have run into a volatile patch in May as uncertainty concerning the outlook for interest rate hikes weigh on investors' sentiments. Among stocks, Element Fleet Management Corp surged 13.3% and logged its best day in more than three years after the vehicle fleet operator raised its annual forecast.
Ballard Power Systems Inc slid 3.5% after the clean energy company reported a 37% decline in first-quarter revenue.
Brokerage Scotiabank resumed coverage of digital healthcare
firm WELL Health Technologies Corp with a "sector
outperform" rating, sending its shares 1.3% up.
Meanwhile, a Statistics Canada report showed that the value
of March domestic building permits unexpectedly rose by 11.3%
across residential and non-residential sectors.
(Reporting by Johann M Cherian and Vansh Agarwal in Bengaluru;
Editing by Shweta Agarwal)
