TSX Futures Rise on Higher Gold Prices

The S&P/TSX Composite Index rose nearly 1%, supported by gains in mining and banking stocks. Gold prices held their advanced after the US signaled it would buy back more Treasury notes and bonds in the secondary market. Agnico Eagle gained more than 1.5%, Barrick added about 2%, and WPM rose over 3%. Major banks also advanced following weak retail sales estimates, softer consumer spending reinforced expectations that the Bank of Canada will keep interest rates unchanged next week. RBC, TD Bank and BMO gained about 1% each. Meanwhile, Fairfax Financial (+0.7%), a frontrunner to acquire the Indian government’s stake in IDBI Bank, is set to be given up to two years to consolidate its Indian banking holdings, potentially easing the acquisition process. Retailers traded mostly lower, with Dollarama losing more than 0.5%.

Futures tracking Canada’s stock market moved higher on Friday as rising gold prices supported mining stocks. Gold prices advanced after the US signaled it would intervene in its bond market. Still, financials stocks and the broader market remained under pressure amid elevated bond yields and energy-driven inflation concerns. Meanwhile, Fairfax Financial, a frontrunner to acquire the Indian government’s stake in IDBI Bank, is set to be given up to two years to consolidate its Indian banking holdings, potentially easing the acquisition process.

The S&P/TSX Composite Index edged 0.1% lower to close at 36,365 on Thursday as rising oil prices fueled inflation concerns. Oil prices climbed after US President Donald Trump announced a sweeping package of economic measures targeting Iran. Financials and the broader market came under pressure as bond yields rose amid renewed inflation worries, with RBC down 1.2%, TD Bank shedding 1.4%, BMO losing 1.6%, CIBC retreating 1.9% and Scotiabank falling 1.5%. Retail stocks also posted losses after Walmart sank more than 9% on Wall Street following weaker-than-expected second-quarter results. ATD shed 2.2%, Loblaw lost 1.3% and Dollarama fell 1.4%. Meanwhile, miners extended gains after rallying the previous day as gold prices firmed near a more than two-month high. Agnico Eagle and WPM added 1.8% each, Barrick gained 2.4% and Franco-Nevada advanced 2.8%. Energy stocks also rose amid higher oil prices, with Canadian Natural adding 2.9%.