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TSX hits another record high, closes up 0.57%

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U.S. producer price slightly higher than expected

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Aritzia ( ATZAF ) top performer with 15% gain

(Adds market closing)

By Nikhil Sharma and Nivedita Balu

July 12 (Reuters) - Canada's main stock index hit a

record high on Friday and recorded its best weekly performance

since October, as investor bets on U.S. rate cuts remained firm

despite slightly hotter-than-expected producer price numbers.

At 10:31 a.m. ET (1431 GMT), the S&P/TSX composite index

was up 129.39 points, or 0.57%, at 22,673.52.

Canadian markets tracked Wall Street south of the border

where the indexes closed higher, while the big banks fell after

reporting mixed results.

The U.S. producer price index (PPI) showed a rise of

0.2% in June, a day after softer consumer prices reading

supported a downward trend of inflation in the world's largest

economy.

Despite a moderate rise in the PPI dataset, markets still

maintained a 96.2% chance of a rate cut by the U.S. central bank

in September.

"Although today's data may go against those hoping for a

September cut, when you look back from the trees, what we're

finding is the US economy is slowing," said Macan Nia, co-chief

investment strategist at Manulife Investment Management.

"We believe that will provide the Fed ammunition to begin

cutting rates in September."

On the Toronto Stock Exchange, consumer discretionary

was among top gainers with a 1.2% rise boosted with

Aritzia's ( ATZAF ) 14.8% rise to hit its highest price since

January 2023, after its first-quarter earnings beat analysts'

estimates.

Shares of Filo Corp ( FLMMF ) surged 6.7% and those of Lundin

Mining Corp ( LUNMF ) rose 2% after Reuters reported mining giant

BHP and Lundin were set to make a joint bid for Filo ( FLMMF ).

Cogeco Communications ( CGEAF ) gained 4% after its

third-quarter revenue beat analysts' estimates, boosting the

capped communication services index up 0.83%.

Canadian inflation data due next week will have investors

adjust their rate-cut bets ahead of the Bank of Canada's next

monetary policy meeting on July 24.