TSX Holds Ground Near 34,000 as Oil Rally Offsets Banking Weakness

The S&P/TSX Composite Index closed Thursday at 34,052 points, down 0.30%, as mixed sector performance reflected competing forces in the Canadian market. Energy stocks extended gains driven by elevated oil prices, while major banks retreated on easing stagflation concerns and moderating crude rallies.

Canadian Natural Resources rose 0.92% as West Texas Intermediate crude maintained strength above $89 per barrel. The oil producer benefited from supply uncertainty in global markets, with geopolitical tensions in the Middle East supporting commodity prices. President Trump’s announcement of a 10-day ceasefire between Israel and Lebanon provided some relief, though mediators signaled ongoing challenges in reopening the Strait of Hormuz. This dual narrative of potential peace alongside persistent supply risks has kept energy investors engaged.

Banking stocks faced headwinds as TD Bank and Bank of Montreal slipped 0.20% and 0.40% respectively. The decline came despite strong first-quarter earnings across the Big Six banks, which collectively beat consensus estimates. Analysts noted that elevated valuations and domestic lending risks are tempering enthusiasm, even as credit trends improve. Canadian Pacific Railway led broader market declines with a 1.37% drop, weighing on the transportation sector.

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Looking ahead, investors are monitoring the Bank of Canada’s next policy decision and watching for any shifts in U.S.-Canada trade dynamics. The TSX’s ability to hold above 34,000 suggests underlying strength, particularly in commodity-driven sectors. Gold prices remained resilient around $4,800 per ounce, leaving Agnico Eagle nearly flat at negative 0.03%.

With earnings season winding down and geopolitical developments fluid, the focus shifts to macroeconomic data and central bank guidance for direction.