TSX Futures Edge Higher as Banks Report Earnings

The S&P/TSX Composite Index was little changed near 36,500 on Tuesday amid a batch of earnings reports from major banks. BMO (-0.4%) reported higher third-quarter profit, driven by strong performance in its capital markets business. Scotiabank (+3%) also posted higher third-quarter profit, helped by increased interest income. National Bank (+0.3%) is due to report earnings tomorrow, while RBC, TD Bank (+0.3%) and CIBC (+0.5%) report on Thursday. Focus also remains on US-Canada trade tensions after President Donald Trump on Monday threatened to raise US tariffs on all Canadian cars, trucks and automotive parts to 50% starting January 1st, 2027. Still, manufacturers rebounded after tumbling yesterday, with Magna International, BRP and Linamar rising over 0.5%. Meanwhile, oil prices fell despite the latest US sanctions threat against Iran, weighing on energy stocks. Canadian Natural and Suncor lost over 1%, while Imperial Oil and Cenovus shed about 2%.

Futures tracking Canada’s stock market inched higher on Tuesday amid a batch of earnings reports from major banks. BMO reported higher third-quarter profit, driven by strong performance in its capital markets business. Scotiabank also posted higher third-quarter profit, helped by increased interest income. National Bank is due to report earnings tomorrow, while RBC, TD Bank and CIBC report on Thursday. Focus also remains on US-Canada trade tensions after President Donald Trump on Monday threatened to raise US tariffs on all Canadian cars, trucks and automotive parts to 50% starting January 1st, 2027. Meanwhile, oil prices fell despite the latest US sanctions threat against Iran, offering some respite to financials and broader markets that have been under pressure from energy-driven inflation concerns. Gold prices also slipped as profit-taking and a firmer dollar curbed gains ahead of US PCE data, pressuring mining stocks.

The S&P/TSX Composite Index edged 0.3% higher to close at 36,714 on Monday despite the collapse of trade talks between the US and Canada. Canadian Prime Minister Carney said he would match US tariffs after the US imposed 50% tariffs on selected Canadian goods on Saturday. The new duties include furniture, plastics, plywood and electrical equipment, adding to existing tariffs on steel, lumber and autos. Manufacturers traded lower, with Magna International tumbling 6.6%, BRP down 6% and Linamar slumping 8.6%. Still, equities rose as higher gold prices supported mining shares, with Agnico Eagle adding 1.1%, Barrick rising 1.6% and WPM gaining 2.2%.