TSX Falls on Rising Yields and Geopolitical Risks

The S&P/TSX Composite Index edged lower to trade arround 36,500 on Tuesday amid rising global bond yields and continued uncertainty in the Middle East. Oil prices gained as hopes of a US-Iran peace deal faded, raising concerns over energy-driven inflationary pressures. Bond yields moved higher, pressuring financials and the broader market. RBC and TD Bank shed nearly 1% each, while BMO, Scotiabank and CIBC lost more than 0.5%. Gold prices slipped, weighing on mining stocks. Barrick lost about 0.5%, WPM fell nearly 2%, and Franco-Nevada shed more than 1%. Elsewhere, NexGen Energy (-3.5%) is sharing information and “talking regularly” with mining giant BHP about its Rook I mining project in Saskatchewan, CEO Leigh Curyer said when asked about a potential equity stake. On the data front, home sales rose less than expected in July. Separately, Canada faces a new round of 50% US tariffs this week, with negotiators from the two countries still far from reaching a draft trade deal.

Futures tracking Canada’s stock market edged lower on Tuesday amid rising global bond yields and continued uncertainty in the Middle East. Oil prices gained as hopes of a US-Iran peace deal faded, raising concerns over energy-driven inflationary pressures. Bond yields moved higher, pressuring financials and the broader market. Gold prices slipped and weighed on mining stocks. Elsewhere, NexGen Energy is sharing information and “talking regularly” with mining giant BHP about its Rook I mining project in Saskatchewan, CEO Leigh Curyer said when asked about a potential equity stake. On the data front, home sales rose less than expected in July. Separately, Canada faces a new round of 50% US tariffs this week, with negotiators from the two countries still far from reaching a draft trade deal.

The S&P/TSX Composite Index edged 0.2% lower to close at 36,668 on Monday following the release of CPI data, after reaching a record high on Friday. Canada’s headline inflation rose 3.0%, just above forecasts of 2.9%. Core inflation measures tracked by the Bank of Canada also edged higher, largely reinforcing expectations that the central bank will keep interest rates unchanged this year. Tensions in the Middle East persisted, with little sign of a near-term resolution. Oil prices rose, raising concerns over energy-driven inflationary pressures. Bond yields moved higher, tracking a surge in long-term US Treasury yields. Financials lost ground, with RBC, TD Bank and BMO edging lower. Software and tech-services stocks traded lower, tracking losses among US software infrastructure shares, with Shopify shedding 3.7% and Constellation Software falling 3.2%. Retail stocks also posted losses ahead of retail data on Friday, with ATD (-1.6%), Loblaw (-1.8%) and Dollarama (-2.1%) declining.