TSX Falls as Banks and Miners Slide

The S&P/TSX Composite Index fell 1.1% to close at 35,584 on Wednesday, weighed down by losses in the banking and mining sectors. Oil prices extended their gains, stoking concerns over energy-driven inflation, while hotter-than-expected US CPI data pressured lenders amid increasing bets of a the Federal Reserve’s rate hike. Major banks declined, with BMO and National Bank both shedding 0.9%. Miners extended their losses as gold and silver prices continued to fall, with Agnico Eagle down 4.6%, Barrick losing 4% and WPM shedding 4.8%. In technology, Celestica plunged 9.2% as US chipmakers posted sharp losses, while Shopify fell 2.2%. In contrast, energy producers mostly advanced as oil prices resumed their climb, with Suncor up 1% and Imperial Oil adding 0.6%. Retailers also gained, with ATD rising 2.9% and Loblaw advancing 2.8%.

The S&P/TSX Composite Index fell nearly 1% to trade below 36,000, weighed down by losses in the banking and mining sectors. Oil prices extended gains, fueling concerns over energy-driven inflation, while higher-than-expected US CPI inflation pressured lenders amid uncertainty over the Fed’s policy outlook. Major banks declined, with RBC, TD Bank, BMO and CIBC losing about 1% each. Miners extended their losses as gold and silver prices continued to fall, with Agnico Eagle down more than 4.5%, Barrick shedding over 3.5% and WPM losing nearly 4.5%. In contrast, energy producers gained as oil prices resumed their climb, with Suncor and Imperial Oil rising around 0.5%. On the data front, construction intentions in Canada rose 8.8% in August from July, well above expectations for a 2.9% increase. WSP Global edged higher, while AtkinsRéalis rose more than 0.5%. Technology stocks were mostly higher, with Shopify up 1%. Retailers also advanced, with ATD gaining 1.5% and Loblaw rising 1%.

Futures tied to Canada's stock market edged higher on Wednesday as global bond yields paused their rally. The pause in the recent surge that had pushed global yields to multi-year highs offered some relief to credit-sensitive sectors such as banking. Still, higher than expected US CPI inflation put pressure on lenders amid uncertainty over the Fed policy outlook. Meanwhile, oil prices extended gains, supporting energy producers. In contrast, lower gold prices weighed on mining stocks. On the data front, construction intentions in Canada rose 8.8% in August from July, well above expectations for a 2.9% increase.