04:27 PM EDT, 06/11/2024 (MT Newswires) -- The Toronto Stock Exchange closed with a loss on Tuesday, a day prior to the release of key U.S. economic data and an interest-rate decision from the Federal Reserve.

The S&P/TSX Composite Index closed down 182.42 points to end at 21,887.34.

The biggest advancer on the day was Battery Metals, up 1.8%. The biggest decliners on the day were Base Metals and Health Care, down 2.1% and 1.7% respectively.

Gold was edged higher late afternoon on Tuesday. Gold for August delivery was last seen up US$5.10 to US$2,332.00 per ounce.

West Texas Intermediate (WTI) crude oil closed higher on Tuesday amid competing demand forecasts as the market turns cautious ahead of U.S. inflation data coming tomorrow while the Federal Reserve's policy committee starts a two-day meeting that is expected to end with interest rates unchanged. WTI crude oil for July delivery closed up US$0.16 to settle at to US$77.90 per barrel, while August Brent crude, the global benchmark, was last seen up US$0.43 to US$82.06.

The May U.S. Consumer Price Index will be released on Wednesday morning, and is likely to show inflation remains stubbornly above the Federal Reserve's 2% target. The data is expected to show inflation running unchanged from April at a 3.4% annualized rate, the consensus estimate according to Marketwatch, while the core rate, which excludes volatile items, is expected to fall to 3.5% annualized from 3.6% a month earlier.

While the release coincides with the final day of the two-day meeting of the Federal Open Market Committee, the data is not likely to change expectations the central bank will leave rates unchanged, it may offer more detail on when cuts could begin. If inflation comes in above expectations, the Fed may delay rate cuts, which could affect future cuts from the Bank of Canada.

"While April inflation came in softer-than-expected, paving the way for rate cuts once again after the initial pushback, we have argued that one month of data does not constitute a trend. This puts the May inflation print heavily under the radar, to confirm that disinflation is progressing and to give confidence to the Fed to cut rates this year," Saxo Bank strategist Charu Chanana noted. .

On a positive note the government on Tuesday reached a tentative agreement with 9,000 workers at the Canada Border Services Agency, averting a possible work to rule action from border and customs staff that could have slowed the $2.5-billion of daily trade between Canada and the United States.