TSX Advances as Banks Gain

The S&P/TSX Composite Index rose 0.7% to close at 36,958 on Tuesday as investors weighed major bank earnings against new developments in the US-Canada trade dispute. Financials traded higher amid a busy week of quarterly results from major banks. BMO (+0.6%) reported higher third-quarter profit, driven by strong performance in its capital markets business, while Scotiabank (+7%) also posted stronger earnings, supported by higher interest income. RBC rose 1.4%, TD Bank added 2%, and CIBC gained 2.8% ahead of their results on Thursday. National Bank (+2.6%) is due to report on Wednesday. Miners also supported the index amid higher gold prices. Meanwhile, Canada will double its counter-tariffs on US steel and aluminum products to 50%. New 50% duties will also apply to US-made milk, furniture, clothing, video-game consoles, smartphones, and other electronics, affecting about C$20 billion in annual US exports to Canada.

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.