TSX Advances as Miners Rally

The S&P/TSX Composite Index rose nearly 1% to trade above 36,000, supported by mining stocks. Miners advanced as gold prices climbed, with Agnico Eagle up nearly 3%, Barrick gaining over 2% and WPM adding 2.5%. Other outperformers included Kinross (+3%), First Quantum (+2.5%) and Lundin (+3%). Banking stocks also traded higher despite hawkish remarks from BoC Governor Tiff Macklem following Wednesday’s rate decision. RBC, BMO, Scotiabank and CIBC gained more than 0.5%. Technology stocks were mostly higher, tracking gains among Wall Street’s hyperscalers, with Shopify up over 1.5% and Celestica rising 3%. Dollarama (+1.2%) and Weston (+0.5%) also advanced despite Canadian services activity recording its steepest decline since February, while ATD fell nearly 2%.

Futures tracking Canada’s stock market moved higher on Thursday with support from commodity producers. Gold climbed, lending support to mining stocks. Oil prices also rose amid evolving strikes in the Middle East, supporting energy producers but pressuring credit-sensitive sectors such as financials as inflationary pressures intensified. The Bank of Canada left its key rate unchanged on Wednesday, but Governor Tiff Macklem said policymakers were prepared to hike rates multiple times if inflation remained elevated. Meanwhile, rising global yields have pressured equities this week as markets reassessed interest-rate expectations amid escalating tensions in the Middle East. Elsewhere, BRP’s DOO second-quarter revenue beat estimates. Canada’s merchandise trade surplus with the world narrowed from C$4.2 billion in June to C$769 million in July amid an escalation in the US-Canada trade war in recent weeks.

The S&P/TSX Composite Index rose 0.7% to close at 36,092 on Wednesday after the Bank of Canada kept its key policy rate unchanged at 2.25%, as widely expected. The BoC said recent data had reaffirmed the Governing Council’s view of a broadening economic recovery. However, it noted that upside risks to inflation had increased, while new tariffs had made the growth outlook more uncertain. The central bank left the future path for monetary policy open, saying it would adjust policy as needed. Major banks traded higher, with RBC rising 1.7%, TD Bank adding 1.2%, BMO gaining 2.2%, Scotiabank advancing 1.9%, and CIBC climbing 2.4%. Miners rebounded as gold prices rose following a recent selloff, with Agnico Eagle up 1.2%, Barrick gaining 2%, WPM advancing 3.6%, and Franco-Nevada adding 1.5%. Shopify rose 1%, tracking a rebound in US technology stocks.