TSX Edges Higher on Financials and Miners Gains

The S&P/TSX Composite Index edged higher to trade above 35,000 on Thursday, supported by gains in financial and mining stocks. Financials advanced, with RBC, TD Bank, CIBC, and Scotiabank up about 1% each. Gold prices rose, lifting miners, with Barrick and Franco-Nevada gaining nearly 1%. Technology stocks were mostly lower, with Shopify down 3% and Constellation Software losing nearly 4%, tracking weakness in US software application shares after Meta's guidance disappointed investors. In contrast, Celestica surged 6%, following a rally in US chipmakers. On the earnings front, Vermilion Energy (+2.5%), Kinross Gold (+0.2%), Cenovus (+0.3%), Alamos Gold (-2%), and Loblaw (-0.5%) reported results above expectations, while Ivanhoe Mines (+0.1%) and Tourmaline Oil (-3%) missed estimates. Canadian Natural (-0.5%) and Fairfax Financial (-1%) are due to report after the market close.

Futures tracking the S&P/TSX Composite Index moved higher on Thursday as investors assessed a fresh round of corporate earnings. Vermilion Energy, Kinross Gold, Cenovus, Alamos Gold, Loblaw, and TransCanada reported results above expectations. In contrast, Ivanhoe Mines and Tourmaline Oil missed earnings estimates. Canadian Natural Resources and Fairfax Financial are due to report later in the session. Gold prices rose, supporting mining stocks. Meanwhile, minutes from the Bank of Canada's July 15th policy meeting showed policymakers were divided over the sustainability of the economic recovery. Separately, Prime Minister Mark Carney downplayed the possibility of restricting oil exports to the US as leverage in trade negotiations.

The S&P/TSX Composite Index fell 1.2% to 35,334 on Wednesday, pulling back from a record high as investors assessed the Federal Reserve's latest policy decision. The Fed held interest rates unchanged, as expected, though three FOMC members favored a rate hike. Oil prices also extended gains as Middle East tensions escalated, fueling inflation concerns. The BoC's summary of deliberations showed policymakers agreed the economy was adjusting to recent shocks, although some questioned the recovery's durability and warned about rising inflation expectations. Higher bond yields pressured financials, with RBC down 3% and TD Bank losing 3.2%. Barrick fell 1.4%, while Franco-Nevada gained 1.3%. Shopify lost 1.2% and Celestica dropped 6.2% ahead of Microsoft and Meta earnings and amid a US chip selloff, while Constellation Software rose 3.2%. Energy stocks outperformed on higher crude prices, with Canadian Natural up 4.6% and Cenovus gaining 4.5% after stronger quarterly results.