CBC Daily Digest

Wall Street Cheers CPI Surprise as Focus Shifts to Fed Statement

S&P/TSX Composite Index

📊 S&P/TSX Composite Index Overview – June 12, 2025

• Closing Price (June 12, 2025): 26,524.16

• Daily Change:+97.85 (+0.37%) — the index hit a new all-time closing high, propelled by gains in energy and broader sector rotation.

• Day’s Range:  26,471.40 – 26,586.80

• 52-Week Range: ~23,333 – ~26,692 — spanning from early 2024 lows to record highs in December and now again in June.

• Previous Close (June 11): 26,426.31 (approx.)

• Trend Snapshot: Climbing toward all-time highs as energy and financials ride the wave of stable inflation and strong global demand.

📈 Technical Indicators

• Short-Term Support: ~26,400 — tested earlier in the week and held firmly

• Resistance Levels:

  • Immediate: ~26,600 — near today’s intraday peak.

  • Key: ~26,692 – 26,700 — just above the all-time closing/high mark from December.

• Trend Analysis: With its strong performance, the TSX continues its upward trajectory and trades near its upper band. A sustained move beyond 26,600–26,700 would confirm a fresh breakout above record territory.

🧭 Market Analysis

• Economic Indicators: Canadian economic data remains relatively stable, with modest GDP growth and easing inflation in recent months. Key sectors like energy, materials, and financials continue to benefit from global demand and higher commodity prices.

• Corporate Earnings: UTSX-listed companies, particularly in energy and natural resources, have reported strong earnings driven by cost discipline and favorable commodity cycles. However, consumer sectors are mixed due to household spending pressures.

• Global Factors: Global oil price strength and improving U.S.-Canada trade sentiment are helping support the TSX. Currency stability and central bank policy expectations (BoC rate pause) also play into investor optimism.

🧠 Market Sentiment

• Investor Outlook: Cautiously optimistic. Investors see room for further upside if commodity prices remain elevated and inflation continues to cool. Some concern lingers around potential global growth slowdown.

• Foreign Investment: Stable to positive. Canada’s exposure to global commodities and its relative macro stability make it attractive for international investors seeking resource-linked diversification.

✅ Conclusion

On June 12, 2025, the S&P/TSX Composite surged to an all‑time closing high at 26,524, up 98 points, driven by energy-sector strength and broad investor interest. Trading remains contained between support at 26,400 and resistance in the 26,600–26,700 zone. A break above 26,600 could unlock further upside, while the index remains sensitive to commodity trends and global inflation cues.

IBOVESPA

📊 IBOVESPA Overview – June 12, 2025

• Closing Price (June 12, 2025): 137,128

• Daily Change: +692 (+0.51%) — bolstered by strength in public utilities, real estate, and consumer stocks.

• Day’s Range: 135,628 – 137,531

• 52-Week Range: ~118,223 – ~140,382 — supported by April 2024 lows and January 2025 peaks.

• Previous Close (June 11): 136,436.07

• Trend Snapshot: Testing key resistance amid easing inflation and renewed investor appetite for emerging market equities.

📈 Technical Indicators

• Short-Term Support: ~136,000 — several intraday dips found buying interest near this level.

• Resistance Levels:

  • Immediate: ~137,500 — around today’s peak and a short-term ceiling.

  • Key: ~140,000–140,382 — near the 52-week high, marking a critical breakout zone.

• Trend Analysis: The index remains in an upward consolidation pattern, testing resistance toward 137,500 after a solid breakout above support, positioning itself for a run at record highs.

🧭 Market Analysis

• Economic Indicators: Brazil’s recent IPCA inflation print (+0.26% for May) indicated continued disinflation. Consumer demand is stabilizing, and real interest rates remain supportive of equity valuations.

• Corporate Earnings: Brazilian firms in utilities, real estate, and consumer segments are benefiting from falling inflation and recovering domestic demand. Commodity exporters face some headwinds from global volatility.

• Global Factors: IU.S. dollar strength, commodity price fluctuations, and China’s industrial demand are key external variables influencing Brazilian equities. Recent improvements in global trade sentiment and stable fiscal outlooks have buoyed risk appetite.

🧠 Market Sentiment

• Investor Outlook: Positive. Lower inflation and supportive monetary policy have improved domestic sentiment. Investors are eyeing a possible breakout if macro conditions remain stable.

• Foreign Investment: Increasing interest, particularly in real estate and financial sectors. As inflation moderates and fiscal credibility holds, Brazil is seen as a strong emerging-market bet with upside potential.

✅ Conclusion

On June 12, 2025, the Ibovespa closed at 137,128, advancing 0.51% as sector rotation and commodity-linked names drove momentum. With support around 136,000 and resistance near 137,500, the index is entrenched in a bullish consolidation ahead of a potential breakout toward 140,000–140,382. Continued attention to inflation data, trade dynamics, and commodity prices will be key in defining the next leg.

CPI Eases to 2.4% YoY, Reinforcing Hopes for Rate Cuts

📉 Notable Decliners

2.  Intel Corporation (INTC)

• Industry: Technology / Semiconductors

• Current Price: $20.68

• Change: −2.7%

• Why It’s Noteworthy: Continued slid as investors remain skeptical about its competitive position and AI chip roadmap relative to peers.

📈 Notable Gainers