Canadian stocks settled higher Tuesday, tracking rising global equity markets, ahead of the U.S. Federal Reserve Open Market Committee meeting outcome led by financial and energy stocks. Investors also weighed some promising U.S. macroeconomic data with optimism the Federal Reserve will leave its quantitative easing program undisturbed.
In some encouraging economic news, consumer prices in the U.S. edged up in May albeit less than expected while new residential construction in May rebounded significantly but still below estimates.
The S&P/TSX Composite Index closed Tuesday at 12,367.46, up 78.56 points or 0.64 percent. The index touched an intraday high of 12,389.07 and a low of 12,288.35.
The Global Gold Index plunged 2.80 percent, with gold futures for August delivery plummeting $16.20 or 1.2 percent to close at $1,366.90 an ounce Tuesday on the Nymex.
The Capped Materials Index shed 1.33 percent, with Potash Corporation of Saskatchewan Inc.(POT.TO) gaining 1.65 percent.
Among gold stocks, Yamana Gold Inc. (YRI.TO) plunged 5.13 percent, while Goldcorp Inc. (G.TO) fell 2.19 percent. IAMGOLD Corp. (IMG.TO) shed 2.44 percent, while Barrick Gold Corp. (ABX.TO) slipped 2.58 percent. Kinross Gold Corp. (K.TO) surrendered 1.84 percent, while B2Gold Corp. (BTO.TO) shed 2.44 percent.
The Diversified Metals & Mining Index dropped 1.10 percent, with First Quantum Minerals Ltd. (FM.TO) down 0.71 percent and Teck Resources Limited (TCK_B.TO) up 0.38 percent. Lundin Mining Corp. (LUN.TO) recorded a sharp drop of 3.67 percent.
The Energy Index jumped 1.20 percent, with U.S. crude oil futures for July delivery gaining $0.67 or 0.7 percent to close at $98.44 a barrel Tuesday on the Nymex.
Among energy stocks, Suncor Energy Inc. (SU.TO) added 1.63 percent, while Canadian Natural Resources Limited (CNQ.TO) moved up 0.90 percent. Enbridge Inc. (ENB.TO) gathered 1.77 percent, while Talisman Energy Inc. (TLM.TO) also gained 1.77 percent. Encana Corp. (ECA.TO) was up 2.61 percent, while Niko Resources (NKO.TO) dropped 1.92 percent.
The Financial Index gained 0.71 percent with Manulife Financial Corp. (MFC.TO) up 2.25 percent, Bank of Nova Scotia (BNS.TO) up 0.28 percent, and Bank of Montreal (BMO.TO) up 0.41 percent. Royal Bank of Canada (RY.TO) added 1.19 percent, while The Toronto-Dominion Bank (TD) gained 0.57 percent.
The Information Technology Index gathered 1.59 percent, with BlackBerry (BB.TO) up 3.63 percent.
The Capped Industrials Index moved up 0.82 percent, with Bombardier Inc. (BBD.A.TO, BBD.B.TO) down 2.98 percent.
Aerospace and rail systems company Bombardier said its rail technology division in Germany signed a frame agreement with Deutsche Bahn AG for delivery of up to 450 locomotives, valued at 1.5 billion euros or $2 billion. In a separate release, Bombardier Aerospace said it secured orders for 12 Global 8000 Business Jets, valued at $804 million at list prices.
In economic news from the U.S., new residential construction in the U.S. showed a significant rebound in the month of May, but housing starts still came in well below economists' estimates, a Commerce Department report said Tuesday.
Housing starts in May climbed 6.8 percent to a seasonally adjusted annual rate of 914,000 from the revised April estimate of 856,000. The increase follows a 14.8 percent drop in the previous month. Economists expected housing starts to surge up to an annual rate of 955,000 compared to the 853,000 originally reported for April.
Meanwhile, building permits, an indicator of future housing demand, fell 3.1 percent to an annual rate of 974,000 in May from the revised April rate of 1.005 million. The drop, which followed a 12.9 percent jump in April, were roughly in line with expectations.
Consumer prices in the U.S. increased modestly in May, after having reported decreases in each of the two previous months, a Labor Department report showed Tuesday. The consumer price index for May inched up by 0.1 percent after falling by 0.4 percent in April and dipping by 0.2 percent in March. Economists anticipated the index to edge up by 0.2 percent.
From the eurozone, Germany's investor confidence rose more-than-expected in June after remaining broadly unchanged in the previous month, signaling prospects of a further pick up in recovery that began early this year. Data from the Centre for European Economic Research/ZEW showed the Indicator of Economic Sentiment climbed to a three-month high of 38.5 from 36.4 in May. Economists had forecast a more modest rise to 38.1.
Elsewhere in Europe, consumer price inflation in the U.K. rose more than expected in May, driven largely by the previous month's steep increase in air-fares, smaller decrease in fuel costs and a rise in clothing prices, a report from the Office for National Statistics showed Tuesday. The rate of inflation rose to 2.7 percent in May from 2.4 percent in April. Economists expected an increase to 2.6 percent.
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June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.