TSX falls; investors assess domestic and US inflation data

Canada's benchmark index fell on Tuesday, dragged by heavyweight mining shares, as investors assessed key domestic and U.S. inflation data.

Toronto's S&P/TSX composite index TSX fell 0.4% to 27,160.74 points, after briefly hitting a fresh intraday record high earlier in the session.

Canada's annual inflation rate rose to 1.9% in June as expected by analysts, with automobiles, clothing and footwear adding to the hike in the index.

In the U.S., CPI data showed that prices increased in June as expected, with the Federal Reserve likely to keep rates unchanged in July while monitoring inflation pressures.

On TSX, heavyweight mining TTMT shares fell 0.9% tracking a fall in gold prices.

Gold miner Lundin Gold LUG fell 2.4%; Alamos Gold AGI and Agnico Eagle Mines AEM were both down about 1% each.

Energy TTEN stocks fell 0.5%, financials (.SPTTFS) were down 0.4% and consumer staples (.GSPTTCS) declined 0.9%.

However, utilities TTUT rose 0.1%, led by a 3.3% rise in Brookfield Renewable Partners LP BEP.PR.R after parent company Brookfield Asset Management BAM signed a $3 billion hydropower agreement with Google GOOG.

Despite President Donald Trump's renewed tariff threats, markets are focusing on a breakthrough from negotiations with U.S. trade partners.

Hopes were raised after Trump on Monday signaled willingness to talk with the European Union and other trading partners.

"A lot of it just keeps coming back to trade and trade negotiations. The president has set an August 1st deadline to make deals and he said that he's going to be firm on that ... so it's all about trade," said Allan Small, Senior Investment Advisor at Allan Small Financial Group.

In company news, U.S. crypto miner Riot Platforms RIOT on Monday reported beneficial ownership of 10.29% in Canadian bitcoin miner Bitfarms BITF. Shares of Bitfarms fell 3.4%.