TSX Falls as Financials and Gold Miners Retreat

The S&P/TSX Composite Index fell more than 0.5% to trade below 35,500 on Thursday as gold prices slipped, while investors assessed worsening tensions in the Middle East. Agnico Eagle shed 2.5%, while Barrick and WPM lost more than 3% each. Meanwhile, the conflict pushed oil prices higher on supply concerns, fueling inflation worries. Financials traded lower, with RBC, TD Bank, Scotiabank, and CIBC losing nearly 1% each. Elsewhere, Cogeco Communications gained 0.5% despite missing third-quarter revenue estimates after the market close on Wednesday. Meanwhile, US Trade Representative Jamieson Greer said formal trade talks with Mexico were making progress, while discussions with Canada had yet to deliver the concessions sought by President Trump as he pushes to reduce US trade deficits with both countries. Earlier this month, the US said it would not renew the USMCA, although the pact would remain in effect until the issues are resolved or the agreement is terminated.

Futures tracking the S&P/TSX Composite Index fell on Thursday as gold prices slipped, while investors assessed worsening tensions in the Middle East. Lower gold prices weighed on mining stocks. Meanwhile, the conflict pushed oil prices higher on supply risks, fueling inflation concerns. Bond yields moved higher, pressuring financials and the broader market. Elsewhere, Cogeco Communications missed third-quarter revenue estimates after the market close on Wednesday, hurt by a decline in its US subscriber base. On the trade front, US Trade Representative Jamieson Greer said formal trade talks with Mexico were making progress, while discussions with Canada had yet to deliver the concessions sought by President Trump as he pushes to reduce US trade deficits with both countries. Earlier this month, the Trump administration said it would not renew the USMCA trade agreement, although the pact would remain in effect until the issues are resolved or the agreement is terminated.

The S&P/TSX Composite Index added 0.3% to close at 35,416 on Wednesday as investors assessed the Bank of Canada's interest rate decision. The BoC kept its key policy rate unchanged at 2.25%, as expected, noting that the economy is showing signs of improvement. The central bank said growth is picking up and inflation is projected to ease gradually from its recent spike. However, it also highlighted significant risks and uncertainties stemming from the conflict in the Middle East and US trade policy. Financials led the gains, with RBC up 1.6%, TD Bank adding 1.4%, BMO advancing 1.3%, and CIBC rising 1.7%. Meanwhile, mining stocks pared earlier gains, with Agnico Eagle down 1.3% and Barrick losing 1.6%. Shopify (-1.8%), Constellation Software (-2%), and Celestica (-2.9%) tracked weakness in US technology stocks. Elsewhere, Cogeco Communications (+1.3%) is set to release its third-quarter results after the market close.