Aug 13 (Reuters) - Canada's main stock index scaled a new all-time high on Wednesday, helped by gains for the financial and consumer discretionary sectors, as investors cheered recent U.S. inflation data that has left the door open to Federal Reserve interest rate cuts.
The S&P/TSX composite index (.GSPTSE), ended up 72.17 points, or 0.3%, at 27,993.43, surpassing Tuesday's record closing high.
"We're seeing equity markets continue to do well," said Colin Cieszynski, chief market strategist at SIA Wealth Management. "People remain confident the economy has held up, and inflation has not taken off as much as people thought."
Data on Tuesday showed that U.S. consumer prices increased marginally in July, reinforcing expectations that the Fed would ease rates in September.
Investors expect the Bank of Canada to remain on hold for a fourth straight meeting next month but are leaning toward a rate cut in October. Policymakers were divided on how much monetary policy could aid growth under current economic conditions, minutes of the BoC's meeting last month showed.
"Canadian central bankers were dissuaded from delivering a 25 basis point cut in July, but the door remains open to resume easing later this year," Tiago Figueiredo, a macro strategist at Desjardins, said in a note.
The consumer discretionary sector (.GSPTTCD), rose 2.4%, led by Gildan Activewear (GIL.TO). Its shares jumped 11.8% after the apparel manufacturer agreed to buy U.S. undergarments maker Hanesbrands (HBI.N), for $2.2 billion.
Hudbay Minerals Inc (HBM.TO), was another standout, with its shares climbing 14.8% after the company sold a 30% stake in a copper project located in Arizona to Mitsubishi (8058.T), for $600 million.
Heavily weighted financials (.SPTTFS), added 0.7%, while real estate (.GSPTTRE), ended 1.3% higher as bond yields declined.
The Canadian 10-year yield was down 3.9 basis points at 3.396%.
Technology was a drag, losing 1%.
Reporting by Fergal Smith and Nikhil Sharma; Editing by Vijay Kishore and Nia Williams
