Stocks slide after December inflation report, tariff concerns

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A A "Bay Street" sign is displayed in the financial district of Toronto on Feb. 21, 2020. Photo by Stephanie Foden/Bloomberg

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Canadian equities slipped at Monday’s open after a hotter-than-expected inflation report and as the country considers sending troops to Greenland despite threats of more tariffs from U.S. President Donald Trump. 

Financial Post

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The S&P/TSX Composite Index slipped 0.2 per cent, retreating from a record and poised to snap a three-day winning streak. Losses were led by the tech and financial sectors, while gold and silver miners climbed with precious metals prices.

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Canadian inflation quickened to 2.4 per cent in December as a result of a tax break on consumer items implemented the year before.

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S&P/TSX index members are expected to post another record earnings season when fourth-quarter reporting begins in earnest next week, Jean-Michel Gauthier, quantitative and index strategist at Scotiabank, wrote in a Monday note to clients. He sees fourth-quarter earnings up 14 per cent year over year.

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“Overall, 2026 EPS leadership and precious metal strength should rekindle domestic and foreign investors’ appetite for the Canadian equity market, which should help narrow the valuation discount to the U.S. and further position the TSX for another year of outperformance,” he wrote.

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