TSX Falls on Losses in Banking and Mining

The S&P/TSX Composite Index fell 0.2% to close at 35,155 on Thursday, weighed down by losses in the mining and banking sectors amid elevated global bond yields. Canada’s 10-year government bond yield remained near multi-year highs despite pulling back from recent peaks. Major banks closed lower, with RBC down 0.7% and BMO shedding 0.6%. Miners also fell despite higher gold prices, as elevated Treasury yields and a stronger dollar pressured the outlook. Agnico Eagle fell 1.5%, Barrick shed 1.6% and Franco-Nevada lost 0.9%. First Quantum was the main exception, rebounding 0.5% from a 15.3% plunge the previous day after a Panamanian government commission recommended formal talks on a new framework for the Cobre Panamá mine. Panama had previously urged the orderly closure of the mine. In contrast, energy producers gained as the oil rally picked up speed. Canadian Natural rose 1.7% and Suncor added 1.8%. Tech stocks closed higher, tracking strength on Wall Street.

The S&P/TSX Composite Index edged lower toward the 35,000 mark as a global bond rout pushed borrowing costs to multi-decade highs amid volatile oil prices. Global bonds extended their selloff, weighing on broader markets. The Canadian 10-year yield pared earlier losses on Thursday, remaining at multi-year highs. Oil prices rose further on reports of tighter Chinese fuel supplies, fueling persistent energy-driven inflation concerns, pushing yields higher and pressuring credit-sensitive sectors. Major banks fell, with RBC, BMO and Scotiabank down about 1%, while TD Bank and CIBC shed around 0.5%. Miners were mostly lower as gold prices pared earlier gains, with Barrick down more than 0.5% and WPM losing 1%. First Quantum was the main exception, rebounding by near 5% from a 15.3% plunge yesterday after a Panamanian government commission recommended formal talks on a new framework for the Cobre Panamá mine. Panama had previously urged the orderly closure of the mine.

Futures tracking the TSX inched lower on Thursday as a global bond rout pushed borrowing costs to multi-decade highs amid volatile oil prices. Global bonds extended their selloff, weighing on broader markets. The Canadian 10-year yield eased on Thursday but remained near multi-year highs. Oil prices rose further on reports of tighter Chinese fuel supplies, fueling persistent energy-driven inflation concerns, pushing yields higher and pressuring credit-sensitive sectors. Meanwhile, miners were set to open higher as gold prices climbed amid reduced expectations for another Fed interest-rate hike this month, after softer-than-expected US PCE inflation data eased rate-hike concerns. Canada’s September PMI data, due later in the day, will offer a read on business activity.