TSX Gains as Oil Rally Stalls

The S&P/TSX Composite Index rose nearly 1% to hover around 35,500 as the oil rally stalled, easing concerns over energy-driven inflation and pushing Canadian bond yields lower. In addition, softer-than-expected US payrolls also supported rate-sensitive stocks amid reduced expectations of a Fed rate hike this month. Financial stocks gained, with Scotiabank up nearly 1%. Tech stocks also advanced, tracking strength in the Wall Street AI trade, with Shopify up nearly 2%. Gold prices edged higher, supporting miners, with Agnico Eagle and WPM both rising more than 2%. Meanwhile, Prime Minister Carney said Canada will fast-track approval of a proposed crude oil export pipeline to the West Coast, a key part of his efforts to diversify the economy away from the US.

TSX futures edged higher on Friday as the oil rally stalled, easing concerns over energy-driven inflation and pushing Canadian bond yields lower. Softer-than-expected US payrolls also supported rate-sensitive stocks, amid reduced expectations of a Fed rate hike this month. The US economy added 29,000 jobs in September, well below forecasts of 90,000 and down sharply from 133,000 in August. Elsewhere, gold prices were little changed but remained on track for a second straight weekly decline, keeping pressure on miners. Prime Minister Carney said Canada will fast-track approval of a proposed crude oil export pipeline to the West Coast, a key part of his efforts to diversify the economy away from the US.

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.