TSX Rises on Energy Gains

The S&P/TSX Composite Index rose over 0.5% to hover above 36,000 on Wednesday with support from energy producers. Crude oil pared losses amid persistent US-Iran tensions, with major disagreements between the two parties posing obstacles to negotiations. Canadian Natural, Suncor, Imperial Oil and Cenovus each added about 1%. Technology stocks also gained, supported by upbeat results from CoreWeave. Shopify rose 1%, Celestica jumped 6%, and Constellation Software gained over 0.5%. Major banks were mostly higher despite the renewed oil rally reviving inflation concerns, with TD Bank and Scotiabank each up more than 0.5%. Meanwhile, gold prices edged lower after a sharp drop in the prior session that hit major Canadian miners, driving them to extend losses. Agnico Eagle and Barrick fell over 0.5%, and Franco-Nevada edged lower ahead of its earnings report. Elsewhere, Power of Canada added nearly 1% ahead of its earnings.

Futures tracking Canadian stocks inched lower as oil prices rebounded, renewing inflation concerns. Crude oil pared losses amid persistent US-Iran tensions, with major disagreements between the two parties posing obstacles to negotiations. Credit-sensitive sectors such as banks have been pressured by energy-driven inflation and the resulting higher-for-longer interest rates since the conflict began. Meanwhile, gold prices stabilized after a sharp drop in the prior session that hit major Canadian miners. On the earnings front, CGI reported EPS and revenue slightly above estimates. Franco-Nevada and Power of Canada are scheduled to report after market close.

The S&P/TSX Composite fell 0.8% to close at 36,170 on Tuesday, weighed down by losses in the mining sector. Miners posted sharp losses as gold prices tumbled on hotter-than-expected US inflation and hawkish remarks from Federal Reserve officials. Agnico Eagle fell 4.5%, Barrick tumbled 5.6%, WPM dropped 4.4%, and Franco-Nevada shed 2.5%. Equinox Gold tumbled 6.2% as adjusted Q3 EPS fell short of expectations, and Endeavour Silver lost 2.8% after narrowing its full-year gold production guidance. Meanwhile, oil prices extended losses as investors increasingly anticipated a diplomatic resolution to the US-Iran conflict. Lower energy prices provided some relief to credit-sensitive sectors: Great-West Lifeco rose 2.7% and Fairfax Financial added 2.5%. iA Financial rose 1.5% after beating EPS estimates and raising its quarterly common dividend. Still, most major banks edged lower. Elsewhere, Hydro One gained 0.6% despite missing EPS expectations.