By Robb M. Stewart


Shares on Canada's main exchange pulled back after inflation data offered a fresh signal the central bank is likely to again hold interest rates steady this month.

Pulling back from a fresh record high close Monday, the Toronto Stock Exchange's S&P/TSX Composite Index at midday was 0.5% lower, at 27068.04. Finance, technology and energy stocks led broad weakness.

The blue-chip S&P/TSX 60 was down 0.5%, at 1608.51.

Heavily-weighted Fairfax Financial was down 0.7%. The major banks also were trading in the red, with Royal Bank of Canada leading the pack downward, with a decline of 0.6%.

After notching solid gains Monday, gold stocks receded. Barrick Gold, Agnico Eagle Mines and B2Gold were each more than 1% lower.

Canada's consumer-price index inched up 0.1% in June and rose 1.9% from a year earlier, quickening from May's steady 1.7% pace. Core measures of inflation were even hotter, which--with elevated uncertainty surrounding tariffs and a recent recovery in the labor market--suggest little urgency for the Bank of Canada to resume cutting interest rates even with the economy faltering.

Ottawa continued to negotiate a new trade-and-security agreement with the White House, though Prime Minister Mark Carney said it may not be possible for the country to escape U.S. tariffs even with a bilateral agreement to resolve the current tariff row. This marks the first time Canada's leader has raised the possibility that U.S. tariffs may remain in place.


Write to Robb M. Stewart at robb.stewart@wsj.com


(END) Dow Jones Newswires

07-15-25 1247ET