TSX Edges Higher as Yields Retreat

The TSX shed 0.3% to close at 35,491 on Wednesday following the US Fed’s widely expected decision to raise its benchmark rate by 25 bps to a 3.75%-4% range. Major banks were mostly lower, with RBC down 0.5%. Gold prices fell following the FOMC decision. Miners also traded mostly lower, with WPM erasing earlier gains to fall 1.9%, while Franco-Nevada shed 1.1%. Energy stocks weighed on the index as oil prices retreated, with Canadian Natural down 3.3% and Suncor off 3.6%. Elsewhere, European Commission President von der Leyen said the EU is opening the door for Canada to become its first “associate member,” with cooperation across manufacturing, AI, critical minerals and energy. The move comes amid an escalation in the US-Canada trade war after talks collapsed last month.

The TSX traded near flat around 35,500 on Wednesday following the US Fed’s widely expected decision to raise its benchmark rate by 25 bps to a 3.75%-4% range. Major banks were mostly higher, with CIBC and National Bank up about 1%. Oil prices and sovereign yields eased after their global rally in recent weeks weighed on equity markets, as investors fear central banks will keep monetary policy tighter for longer to contain inflationary pressures from soaring energy prices. Gold prices edged lower following the FOMC decision. Miners traded mostly lower, with WPM erasing earlier gains to fall more than 1.5%. Elsewhere, European Commission President von der Leyen said the EU is opening the door for Canada to become its first “associate member,” with cooperation across sectors including manufacturing, AI, critical minerals and energy. This follows an escalation in the US-Canada trade war after trade talks collapsed last month.

The TSX edged higher to trade above 35,500 on Wednesday as oil prices and bond yields paused after their recent surge. Oil prices and sovereign yields eased after their global rally in recent weeks weighed on equity markets, as investors fear central banks will keep monetary policy tighter for longer to tame inflationary pressures from soaring energy prices. Major banks edged above the flatline. Gold prices climbed ahead of the Fed’s decision later today, with Agnico Eagle rising nearly 2.5%, while Barrick and WPM gained about 2% each. Elsewhere, European Commission President Ursula von der Leyen said the EU is opening the door for Canada to become its first “associate member,” with cooperation across sectors including manufacturing, AI, critical minerals and energy. This follows an escalation in the US-Canada trade war after trade talks collapsed last month.