Economy & Markets

New data in the U.S. suggest the Fed may be less likely to raise interest rates

By Canadian Press |
Source: The Canadian Press

There were fewer signs of investor angst in the markets on Friday despite the intensifying standoff between the U.S. and North Korea while the loonie rebounded after more than a week of losses.

On Bay Street, the Toronto Stock Exchange's S&P/TSX composite index shed a moderate 40.87 points to 15,033.38.

Trader sentiment was better in New York, where investors welcomed data showing consumer prices edged up 0.1% last month after no gain in June, suggesting the U.S. Federal Reserve Board may be less likely to raise interest rates.

The Dow Jones industrial average added 14.31 points to 21,858.32, the S&P 500 index rose 3.11 points to 2,441.32 and the Nasdaq composite index advanced 39.69 points to 6,256.56.

In currency markets, the Canadian dollar was trading at an average price of US78.83¢, up 0.16 of a cent.

The price of gold slowed its pace of considerable gains over the last two trading days.

December gold tacked on US$3.90 to US$1,294.00, after surging US$27.50 the previous two days.

The precious metal is considered a safe haven for nervous investors.

Elsewhere in commodities, the September crude contract was up US23¢ at US$48.82 a barrel, September copper gained a penny at US$2.91 a pound and September natural gas was unchanged at US$2.98 per mmBTU.