TSX Falls on Miners and Banks Losses

The S&P/TSX Composite Index fell 0.7% to close at 36,137 on Thursday amid losses in the banking and mining sectors. Miners posted losses as gold prices fell sharply, pressured by a stronger US dollar, expectations of further Fed tightening, and rising oil prices. Agnico Eagle lost 4.1%, while Barrick fell 3% and WPM shed 2.7%. Franco-Nevada edged 0.4% lower after signaling its annual earnings would land at the midpoint of earlier guidance rather than the top half. Meanwhile, financials declined as rebounding oil prices amid escalating US-Iran tensions revived inflation fears and reinforced expectations of a restrictive monetary policy stance from both the BoC and the Fed. Great-West Lifeco lost 1.7% and Manulife Financial fell 1.1% . In technology, Shopify fell 1.5% amid the Nvidia crisis, which increased uncertainty in the sector. Celestica gained 4.8%, extending an 8.4% surge from the prior session driven by recent investor-day commentary and strong third-quarter results.

The S&P/TSX Composite Index fell about 0.5% to hover below 36,500 on Thursday, tracking the US stock market following key earnings. The tech sector was pressured by a plunge in Nvidia stock as the company's board met regarding the resignation of CEO and co-founder Jensen Huang over his involvement with a suspected Chinese spy. Shopify declined 1%, and Constellation Software was down more than 1%. In contrast, Celestica gained nearly 4%, extending an 8.4% surge in the prior session following recent investor-day commentary and strong third-quarter results, recovering from the earlier post-US-election global tech selloff. Meanwhile, commodity-backed companies in Canada were under pressure as oil prices fluctuated and gold prices fell. Canadian Natural fell over 0.5%, and Agnico Eagle lost more than 2.5%. Franco-Nevada shed 1% after signaling its annual earnings should land at the midpoint of earlier guidance instead of previous top half estimates.

Futures tracking Canadian equities edged lower on Thursday, mirroring the traditional economic sectors of their US counterparts following key earnings. The tech sector was under pressure from a plunge in Nvidia stock as the company's board met to potentially fire CEO and co-founder Jensen Huang due to his involvement with a suspected Chinese spy. Meanwhile, commodity-backed companies in Canada were likely under pressure as oil prices were volatile and gold prices fell. Crude oil futures wavered on fresh evidence of higher output from the Middle East. On top of that, Franco-Nevada was due to open lower after signaling its annual earnings should land at the midpoint of earlier guidance instead of prior estimates of the top half. At the same time, persistent bets on multiple rate hikes by the Federal Reserve next year pressured gold prices.