12:24 PM EDT, 06/26/2024 (MT Newswires) -- The Toronto Stock Exchange is 28 points lower on mixed sectors, an improvement from the open, when it was down 100 points.

Miners and healthcare are the biggest gainers, up 1.3% and 0.9%, respectively.

Telecoms, down 1%, is the biggest decliner.

BMO Economics, in its morning note, said that after four consecutive positive CPI reports in Canada, the May print "landed with a thud". Headline inflation accelerated to 2.9% y/y, and various core measures picked up as well, disappointing expectations across the board. "So," BMO said, "rather than clinching a July rate cut, markets are going back to the data grind . . . and there is plenty still to shape expectations before that meeting." In addition to the next June CPI report, BMO noted we'll get a jobs report, monthly GDP print and a key Business Outlook Survey. At this point, BMO added, the market has (appropriately) scaled back July rate-cut odds, and BMO's call for a September move remains intact for now.

Elsewhere, Scotiabank awaits tomorrow's 2s auction in the wake of yesterday's "hot" CPI, and Friday's GDP figures. It noted markets now see only 6bps of a cut priced for the Bank of Canada's July 24th decision, down from about 15bps of a cut priced before yesterday's CPI figures. It also noted a lot of data is still ahead before the next decision including another CPI report, the BoC's surveys of businesses and consumers including measures of inflation expectations, a jobs report, and both April and May GDP estimates.