CANADA STOCKS-TSX jumps as soft US inflation lifts Fed rate-cut hopes

By Utkarsh Hathi

Feb 13 (Reuters) - Canada's main stock index rose on Friday, led by consumer discretionary and mining shares, after a softer-than-expected U.S. inflation data strengthened hopes for a Fed rate cut.

The S&P/TSX composite index .GSPTSE was up 1.1% at 32,832.48 points, as of 10:32 a.m. ET, before briefly touching an all-time high at 33,693.99 points. The benchmark is set for weekly gains.

The TSX had opened the week on a strong footing, before fears of AI-led disruption and U.S. jobs data pulled the benchmark down on Thursday.

U.S. January consumer prices increased by 0.2%, less than the widely expected rise of 0.3%, keeping hopes intact for the Federal Reserve to ease interest rates.

"We're not going to get a rate cut in the near term. You could see a rate cut later during the year," said Allan Small, senior investment advisor with Allan Small Financial Group, at iA Private Wealth.

"What the anticipation of rate cuts does here in Canada is it again causes a possible weakness for the U.S. dollar, which therefore allows gold and silver and material stocks to run higher."

The global gold index .SPTTGD led the gains with a 4.5% jump, while the broader materials sector .GSPTTMT rose 3.4% as gold XAU= and silver XAG= gained.

Consumer discretionary .GSPTTCD jumped 3.4%, set to log the biggest daily gain since April 2025, as auto-parts supplier Magna International MG.TO soared 16% after a strong annual profit forecast.

The tech index .SPTTTK gained 1.2%. However, tech shares, which have recently been under pressure, are still on track for the longest weekly losing streak since May 2022.

Energy companies .SPTTEN gained 0.3%, while oil prices slipped following a Reuters report that OPEC is leaning towards a resumption in oil output increases.

Limiting the gains, real estate shares .GSPTTRE slid 1.3%, after commercial real estate services firm Colliers CIGI.TO slumped 11% after missing quarterly revenue estimates.

Heavy-weighed financials .SPTTFS fell 0.2%.