Canada: TSX Slips Despite Softer-Than-Expected Inflation.

The S&P/TSX Composite Index fell 0.7% to close at 35,929 on Monday as investors assessed fresh inflation data and the outlook for Bank of Canada (BoC) policy. Canada’s annual inflation rate rose to 3.1% in September, its highest level in four months, driven by higher gasoline prices, but came in below market expectations of 3.2%. Despite the downside surprise, concerns about the inflation outlook persisted, with policymakers flagging upside risks to prices. BoC Governor Tiff Macklem said on Saturday that the central bank expects to raise its quarterly inflation forecast significantly this month, following hawkish remarks last week about energy-driven price pressures. Oil prices remained elevated amid attacks on tankers in the Strait of Hormuz, keeping inflation risks in focus. Major banks declined, with RBC down 0.9%, while BMO, CIBC and National Bank each shed 0.8%. Mining stocks also fell as gold prices moved lower.