Everything You Need to Know on Tuesday: Statistics Canada to Release May Inflation Report Today

Good morning mooers! Here are things you need to know about today's market:

● S&P/TSX 60 Index Standard Futures are trading at 1,309.70, down 0.17%

● Statistics Canada to release May inflation report today

● 'We’re expecting modest disinflation': Manulife investment strategist on Bank of Canada outlook

● Supply, demand factors help boost crude oil to 7-week high, Commerzbank says

● Paladin's uranium deal signals M&A push for rich Canadian deposits

Today, the Canadian dollar is trading at 73.09 cents US, a slight increase from Monday.

S&P/TSX 60 Index Standard Futures are trading at 1,309.70, down 0.17% from previous close.

Statistics Canada is set to publish its May consumer price index report this morning.

Economists are expecting inflation slowed slightly last month, which would be another good sign for the Bank of Canada.

The central bank, which has been encouraged by the slowdown in inflation, cut its key interest rate by a quarter of a percentage point earlier this month.

Canada's annual inflation rate was 2.7 per cent in April.

Economists say May and June inflation data will play a key role in the central bank's next interest rate decision scheduled for July.

Governor Tiff Macklem has signalled the central bank plans to take rate decisions one at a time.

The Bank of Canada cut interest rates in June for the first time in four years, lowering the rate from five per cent to 4.75 per cent, and one chief investment strategist says economic trends point to more cuts in the coming months.

Kevin Headland, co-chief investment strategist at Manulife Investment Management, joined BNN Bloomberg on Monday to discuss what Canadian economic data could mean for future Bank of Canada decisions and says cooling inflation is a primary factor.

“We’re expecting modest disinflation right along consensus,” said Headland. “Right now the market is pricey and just a hair over a 60 per cent chance of rate cut in July. We expect that to be the case as we see continued disinflation towards a two per cent target.”

Headland says cooling inflation with a two per cent target is the central bank’s “core mandate,” with future policy changes airing on the side of caution.

“Of course, they are going to keep their eye open in terms of any risk of reigniting inflation,” he said. “If they see stronger economic growth, or any issues that might cause a temporary increase in inflation that might change their mind.”

Brent crude oil reached a seven-week high of just over US$86 per barrel last Friday, buoyed by news on both the supply and demand side, Commerzbank said in a Tuesday note.

Saudi Arabia and Russia emphasized that the announced gradual increase in production in October is conditional, which initially went unnoticed after having already been communicated with the Organization of the Petroleum Exporting Countries and allied producers' most recent supply decision.

The all-stock deal will give Australia’s Paladin operational control of one of the most advanced mining projects in western Canada’s Athabasca Basin, a remote area in Saskatchewan that’s loaded with high-grade uranium. Fission’s asset is expected to open in 2029 and produce an annual average of 9.1 million pounds of the metal over a decade.

“The rationale is very compelling,” Paladin Chief Executive Officer Ian Purdy said in a Monday interview. “We see this as a fantastic asset.”

Fission is one of several junior mining firms racing to develop projects in the Athabasca region, along with NexGen Energy Ltd. and Denison Mines Corp. The region has become a hub of mining activity as supply concerns escalate and while countries warm to nuclear power as part of a global push to move away from fossil fuels.