TSX Gains as Banks and Energy Shares Climb
The S&P/TSX Composite Index rose more than 0.5% to above 36,000 on Friday, supported by gains in the banking and energy sectors. The oil rally lost momentum, offering some relief to credit-sensitive stocks that had been under pressure from energy-driven inflation concerns. Bond yields remained below recent peaks. Major banks advanced, with RBC, BMO, Scotiabank and CIBC each gaining about 0.5%. Energy companies also rose despite the slowdown in oil prices, with Canadian Natural adding more than 1% and Suncor, Imperial Oil and Cenovus gaining over 1.5%. Energy-related infrastructure stocks advanced as well, with Enbridge up more than 0.5%. Miners were subdued despite higher silver and copper prices, as gold traded near flat. Meanwhile, Bank of Canada Governor Tiff Macklem said Canada had not yet raised interest rates but warned that the longer energy prices remain elevated, “the harder that gets.” Markets are currently pricing in a rate hike at the next policy meeting.
The S&P/TSX Composite Index rose more than 0.5% to above 36,000 on Friday, supported by gains in the banking and energy sectors. The oil rally lost momentum, offering some relief to credit-sensitive stocks that had been under pressure from energy-driven inflation concerns. Bond yields remained below recent peaks. Major banks advanced, with RBC, BMO, Scotiabank and CIBC each gaining about 0.5%.
Energy companies also rose despite the slowdown in oil prices, with Canadian Natural adding more than 1% and Suncor, Imperial Oil and Cenovus gaining over 1.5%. Energy-related infrastructure stocks advanced as well, with Enbridge up more than 0.5%. Miners were subdued despite higher silver and copper prices, as gold traded near flat. Meanwhile, Bank of Canada Governor Tiff Macklem said Canada had not yet raised interest rates but warned that the longer energy prices remain elevated, “the harder that gets.” Markets are currently pricing in a rate hike at the next policy meeting.