TSX opens down 0.7% at 36,190.03 as U.S. inflation remains sticky
Key Facts
Toronto’s S&P/TSX Composite opened Tuesday, November 10, down 0.7% at 36,190.03 at 9:30 a.m. ET, according to Reuters. The agency attributed the pressure to higher-than-expected U.S. inflation data and weaker metal and oil prices. The move came at the start of trading, after the index closed at a high level in the previous session, putting the impact of the new factors in focus. Stickier U.S. inflation lifted expectations that interest rates would remain elevated for longer. Materials and energy stocks were among the sources of pressure on the Canadian index.
U.S. Bureau of Labor Statistics data showed the consumer price index rose 0.4% month over month in October, after a 0.6% increase in September. Despite the slower monthly increase, the reading exceeded market expectations by a tenth of a percentage point, according to The Associated Press. The core index, which excludes food and energy, rose 0.3% in October, the same rate recorded in September and August. Core inflation also came in a tenth of a percentage point above expectations, according to the AP. The unchanged core reading, alongside both figures exceeding expectations, kept inflationary pressures in focus for investors.
Shelter was a notable component of the October report: its index rose 0.3% and accounted for more than 30% of the monthly increase in the all-items index, according to the Bureau of Labor Statistics. The energy index’s increase also slowed to 0.7% in October, after rising 5.2% in September. The gasoline index rose 1.0% during the month, after climbing 9.1% in the previous month. The month-to-month comparison shows that increases in energy and gasoline eased markedly from September, while shelter continued to make a meaningful contribution to the overall rise. The price report came as Reuters linked the Canadian index’s decline to weaker metal and oil prices, alongside the U.S. inflation surprise.
The price report immediately affected U.S. markets: U.S. stocks fell right after its release and Treasury yields rose, according to the AP. The agency linked the move to expectations that inflation would persist and U.S. interest rates would remain elevated. In remarks reported by the agency, Federal Reserve Governor Christopher Waller said a half-point rate increase at the December meeting was “possible,” and that inflation remained far above the central bank’s 2% target. He added: “Economic activity is strong, the labor market is stable, but inflation is much too high.” His comments came on the same day as the October data, adding to the debate over the path of U.S. monetary policy.
Toronto stocks entered the session after a strong close on Monday, November 9, when the S&P/TSX Composite rose 1.8% to 36,446.26, its highest close since September 4, according to Reuters. In broader markets, the S&P 500 rose 2.3% that day, while Brent crude fell 5.8%, according to the AP. The agency said the oil drop helped lift the U.S. market in Monday’s session. Those moves provide recent context for Tuesday’s open, when U.S. inflation data and weakness in commodities again weighed on the Canadian index. The Bank of Canada had raised its overnight rate by 25 basis points to 2.5% on October 28.
The Bureau of Labor Statistics did not publish the year-over-year inflation rate for October 2026, explaining that it had not collected October 2025 survey data because of a lapse in appropriations. The report, however, included monthly price changes for October, including the 0.4% overall increase and the 0.3% core increase. The bureau is scheduled to release November consumer price index data on December 10, 2026, at 8:30 a.m. ET. In Canada, the Bank of Canada scheduled its next overnight rate announcement for December 9, 2026. Before then, the Organization of the Petroleum Exporting Countries’ monthly report is listed on the Wednesday, November 11 release schedule, according to the schedule included in the materials.