TSX Edges Higher as Banks Gain

The S&P/TSX Composite Index rose 0.5% to close at 36,108 on Tuesday, supported by gains in the banking sector. RBC advanced 1%, TD Bank gained 1.2%, and Scotiabank and CIBC each added 0.9% as the oil rally lost steam, easing pressure on credit-sensitive sectors hit by energy-driven inflation. Infrastructure and utility-related stocks also advanced, with Enbridge up 1.1%, TC Energy gaining 1.3%, and Waste Connections rising 1.8%. Retailers also posted gains, with Loblaw up 0.5% and ATD adding 1.9%. In technology, Shopify rose 1% and Constellation Software gained 2.6%, despite a selloff in US chipmakers and hyperscalers, while Celestica slipped 0.5%. Energy producers were subdued as crude prices pared gains, with Cenovus down 0.5%. Mining stocks fell alongside gold prices, with Agnico Eagle and WPM each losing 1%.

The S&P/TSX Composite Index edged above 36,000 on Tuesday, supported by the banking sector. RBC, TD Bank, BMO and CIBC each rose about 0.5% as the oil rally lost steam, providing some relief to credit-sensitive sectors that have been under pressure from energy-driven inflation. Retailers posted solid gains, with Loblaw up 1.5% and ATD adding more than 2.5%. In the technology sector, Shopify rose 0.5% and Constellation Software gained 2.5%, despite a selloff in Wall Street chipmakers and hyperscalers, while Celestica fell more than 4%. Mining stocks declined amid falling gold prices, with Agnico Eagle and Barrick each down about 1%, while WPM lost more than 1.5%. Energy producers were subdued as crude oil prices pared gains, with Suncor and Cenovus each losing nearly 1%.

Futures tracking Canada’s stock market edged lower on Tuesday amid expectations of a hawkish Bank of Canada and concerns over trade tensions with the US. Traders increased their bets on an interest rate hike next week after September’s inflation data came in above the BoC’s upper target limit. The prospect of tighter monetary policy, combined with elevated energy prices amid escalating Middle East tensions, weighed on sentiment toward credit-sensitive stocks, including major banks. A BoC survey released on Monday also showed that Canadian firms’ outlook had deteriorated following the collapse of trade talks with the US. Meanwhile, lower gold prices put further pressure on mining stocks.