TSX Flat Amid Banking Gains and Energy Losses

The S&P/TSX Composite Index was little changed near 36,000 on Friday as oil prices and global yields eased from recent peaks but remained elevated. Oil fell from recent highs amid reports that the US and Iran were considering a deal that could reopen the Strait of Hormuz and lift the US blockade on Iranian ports. The pullback in oil offered some respite to credit-sensitive sectors that have been under pressure from energy-driven inflation concerns. Global yields pared some gains after surging over the past two sessions but remained elevated. RBC and TD Bank rose nearly 1%. Gold prices moved higher, supporting mining shares, with Agnico Eagle edging higher and Barrick adding 0.5%. Kinross rebounded nearly 2% following a more than 10% slump on Thursday after lowering its production outlook for 2026 and 2027. Energy heavyweights lost about 1.5% each amid lower oil prices, weighing on the index.

Futures tracking Canadian equities edged higher on Friday amid a favorable backdrop for banking and mining stocks, as easing oil prices and gains in precious metals provided support. Oil fell amid reports that the US and Iran were considering a deal that could reopen the Strait of Hormuz and lift the US blockade on Iranian ports. The pullback in oil offered some respite to credit-sensitive sectors that have been under pressure from energy-driven inflation concerns. Global yields pared some gains after surging over the past two sessions but remained elevated. Gold prices moved higher, supporting mining shares. The tech sector was on track for weekly gains, tracking Wall Street’s AI optimism.

The S&P/TSX Composite Index edged 0.1% lower to close at 35,706 on Thursday as mining losses and a subdued financial sector weighed on the index. Canada’s 10-year yield reached a three-year high as energy-driven inflation concerns persisted and US Treasury yields soared to multi-decade highs. Crude oil and global yields were volatile late in the session, with an upward trend. Financial stocks traded mostly near flat. Gold prices fell, pressuring mining stocks, with Agnico Eagle down 0.6% and WPM shedding 0.7%. Kinross plunged 11.3% after lowering its production outlook for 2026 and 2027. Meanwhile, energy shares gained on higher oil prices. Retailers rose as estimates showed retail sales likely rebounded in August, marking their strongest gain since January. Tech stocks were mostly higher, with Shopify up 2.4%, tracking Meta’s gains amid their partnership to enable purchases through Meta’s Muse AI agent using Shop Pay. BlackBerry shed 3.9% despite its strong 2Q26 results.