TSX Edges Higher as Bond Yields Stabilize

The S&P/TSX Composite Index edged higher to above 35,500 on Tuesday as bond yields stabilized. Oil prices halted their rebound after US President Trump said Russia could resume diesel exports to the US. This supported credit-sensitive sectors such as banking. RBC rose more than 0.5%, while TD Bank, BMO, Scotiabank and CIBC gained about 1% each. Energy producers also advanced despite the pause in the oil rally, as prices remained elevated, with Canadian Natural, Suncor and Imperial Oil up about 3% each. Gold prices pared earlier gains, with Agnico Eagle, Barrick and WPM shedding around 1% each. Elsewhere, CSG announced it had acquired a 9.5% stake in MDA Space, becoming the company’s largest shareholder; MDA traded near the flatline. In technology, Shopify jumped 4% and Constellation Software rose 3.5% amid gains in US hyperscalers and other software stocks, while Celestica fell 7%, tracking losses among chipmakers.

Futures tied to Canada's stock market rose on Tuesday as bond yields stabilized and gold prices edged higher. Oil prices fell, on track for their first decline in nearly a week after US President Trump stated Russia could restart diesel exports to the US. The halt in the energy rally supported credit-sensitive sectors such as banking. Gold prices edged higher, providing some support to major Canadian miners. Elsewhere, CSG announced that it had acquired a 9.5% stake in MDA Space, becoming the company's largest shareholder.

The S&P/TSX Composite Index rose 1.5% to close at 35,665 on Friday as weaker employment data reinforced expectations that the Bank of Canada will refrain from hiking rates. Employment fell by 68,300, missing expectations for a 7,000 increase. The unemployment rate edged up to 6.5%, in line with forecasts. Canadian yields fell, supporting credit-sensitive stocks. RBC rose 1.1%, TD gained 1.2%, BMO advanced 1.6%, and Scotiabank and CIBC added 1.3% each. Gold prices also advanced, lifting mining shares, with Agnico Eagle up 3.2% and Barrick and WPM gaining 2.9% each. Lundin surged 10.5% after its Fruta del Norte mine in Ecuador posted its strongest production quarter on record. Energy producers also gained despite volatile oil prices. Technology stocks advanced amid strength among US hyperscalers, with Shopify up 4.1%. Elsewhere, Aritzia surged 20.5% after beating expectations for second-quarter revenue and profit. The TSX rose 0.9% weekly.