TSX Nears Record High on Banking and Energy Gains

The S&P/TSX Composite Index edged 0.4% lower to close at 36,814 on Wednesday, retreating from Tuesday’s record high, as mining losses and trade tensions weighed on the index. Miners were mostly lower as gold prices slipped following US PCE data above forecasts, raising expectations for a Fed rate hike. Agnico Eagle tumbled 4.2%, Barrick shed 3.6% and WPM fell 4.3%. BRP (+1.7%) and Linamar (-1.4%) extended losses amid escalating trade tensions. Canada announced retaliatory tariffs on about $20 billion worth of annual US imports, matching Washington’s latest duties on autos, furniture, plastics, plywood and electrical equipment. ATD (-1.1%) and Dollarama (-3.6%) also fell as trade tensions are expected to weigh on Canada’s economy. National Bank fell 4.2% despite reporting third-quarter profit above expectations. RBC (+0.5%), TD Bank (+0.7%) and CIBC (+0.1%) report on Thursday. BMO closed flat and Scotiabank rose 0.8% after reporting stronger-than-expected quarterly results on Tuesday.

The S&P/TSX Composite Index edged higher to trade above 37,000 on Wednesday, tracking for another record high amid bank earnings. BMO (+0.3%) and Scotiabank (+2%) advanced after reporting stronger-than-expected quarterly results on Tuesday, while RBC (+0.5%), TD Bank (+1%) and CIBC (+0.3%) report on Thursday. National Bank fell nearly 5% despite reporting third-quarter profit above expectations. Energy stocks gained despite lower oil prices amid renewed talks between Iran and Oman, as prices remained elevated and prospects for a US-Iran peace deal uncertain. Canadian Natural, Suncor and Cenovus gained about 1%. Miners were mostly lower as gold prices slipped following US PCE data above forecasts, raising expectations for a Fed rate hike. Agnico Eagle, Barrick and Franco-Nevada shed over 1%, while WPM lost more than 2%.

Futures tracking Canadian equities were little changed on Wednesday amid the ongoing US-Canada trade tensions and a batch of earnings reports from major banks. Canada announced retaliatory tariffs on about $20 billion worth of annual US imports, matching Washington’s latest duties on autos, furniture, plastics, plywood, and electrical equipment. Meanwhile, National Bank reported higher third-quarter profit, driven by strong performance in its wealth management segment. BMO and Scotiabank also posted stronger-than-expected quarterly results on Tuesday, while RBC, TD Bank, and CIBC are due to report on Thursday. Elsewhere, gold prices slipped, weighing on mining stocks, while oil prices fell as renewed talks between Iran and Oman revived hopes that the Strait of Hormuz could reopen, easing inflation concerns but pressuring energy shares.