Consumer staples, miners push TSX to record peak; eyes on week's economic data

Sept 3 (Reuters) - Canada's main stock index touched a new record high on Wednesday, led by consumer staples and materials, while investors remained focused on key economic data this week that could shape the Bank of Canada's rate decision.

The Toronto Stock Exchange's S&P/TSX composite index (.GSPTSE), was up 0.3% at 28,702.19 points, continuing gains for the sixth straight session.

Consumer staples (.GSPTTCS), rose 1.7% after Canada's Alimentation Couche-Tard (ATD.TO), reported its quarterly earnings. The Circle K parent rose 5.8%.

An index of mining stocks (.GSPTTMT), rose 1.1% as gold extended its rally, reaching a new all-time high, amid growing expectations of U.S. Federal Reserve rate cuts.

Back home, the focus remained on Canada's unemployment data, scheduled to come out on Friday, for potential signals that could guide the BoC's rate-cut path later this month.

"The Bank of Canada is in a tough spot," said Michael Sprung, noting seven months of manufacturing GDP contraction that could argue for cuts, even as lingering tariff-driven inflation may hold them back.

Traders are pricing in a 37% chance of a September interest rate cut on Wednesday, as per data compiled by LSEG, compared to a bet of 50% in the previous session.

"The worry about inflation is not going away... so as the day comes nearer, those (rate-cut) expectations tend to go down." Sprung added.

The BoC has kept rates steady at 2.75% at its last three meetings since March.Data showed on Wednesday, Canadian labor productivity

fell by 1.0% in the second quarter, as businesses reduced their output in response to the uncertainty around trade. The last time productivity declined so sharply was in the fourth quarter of 2022.

South of the border, a Labor Department report showed job openings fell to 7.181 million in July, compared with economists' estimate of 7.37 million.

The data is the first in a series of jobs reports this week that could give investors a clearer view on the Fed's policy path.

Reporting by Sanchayaita Roy in Bengaluru; Editing by Vijay Kishore

Reuters

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Consumer staples, miners push TSX to record peak; eyes on week's economic data

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