North American stocks moved higher Wednesday, as the release of U.S. economic data suggesting that inflation is in check gave investors hope the U.S. Federal Reserve would not raise rates at its next meeting in September.

The S&P/TSX composite index gained 53.10 points, or 0.44%, to 12,030.25.

A U.S. report indicated July core consumer prices rose 0.2%, which was lower than expected. This follows a report released early this week indicating producer price numbers were also in check.

Eight of the 10 TSX main sub-groups were up.

The financials sector moved forward 0.89%.

TD Bank gained $1.33, or 2.25%, to $60.57.

The materials index was up 0.69%, and the gold sub-sector gained 0.98%. The December gold futures contract gained $6.10 to US$639 an ounce.

Bema Gold Corp. was up 9¢, or 1.52%, to $6.02.

Teck Cominco cancelled its bid for Inco. Teck had announced yesterday a bid of $89 a share for Inco. The way appears clear for a CVRD takeover of Inco. Teck shares gained $2.21 to $82.02, while Inco shares fell $3.20 to $86.55.

The energy index was down 0.50%.

Light, sweet crude for September delivery fell $1.16, or 1.6% to US$71.89 a barrel.

Petro Canada fell 13¢, or 0.26%, to $50.28.

Among individual stocks, Mosaid Technologies Inc. was warned Tuesday by a U.S. investment firm to put itself up for sale immediately or face a shareholder revolt. Its shares advanced $3.15, or 14%, to $25.50.

The Canadian dollar moved up 0.45 of a cent to US89.47¢.

The S&P/TSX Venture composite index finished up 21.16 points, or 0.82%, to 2,614.93.

In New York, markets rallied as the release of the July CPI information reassured investors that the Fed might decide to not raise rates at its next meeting.

The Dow Jones industrial average rose 96.86 points to 11,327.12, the Nasdaq Composite Index climbed 34.53 points to 2,149.54, and the S&P 500 index was up 9.85 points at 1,295.43.