The TSX ticker outside the TMX Group’s main office in Toronto’s financial district is seen on Tuesday, August 6, 2024. Canadian stocks dropped sharply at the start of trading but later recovered some ground, as markets reopened following Monday’s global selloff. The Toronto Stock Exchange and other trading platforms had been closed the previous day for a public holiday. (Cole Burston/Bloomberg)
Canada’s main stock market ended Thursday on a high note, gaining nearly 100 points, led by strong performances from energy stocks. The S&P/TSX composite index closed at 25,254.06, up 92.88 points, boosted by better-than-expected earnings from major oilsands companies.
Cenovus Energy and Canadian Natural Resources, two of the country’s top oil producers, reported solid quarterly results that beat analysts' profit forecasts. Their performance gave a major push to the energy sector, which led the day’s rally. Other sectors such as industrials, telecommunications, and base metals also saw meaningful gains, contributing to the overall positive momentum.
In contrast, telecom giant BCE Inc. had less encouraging news. The company announced a steep cut to its quarterly dividend, slashing it from 99.75 cents to 43.75 cents per share. This decision comes amid growing pressure from rising competition, changing regulations, and ongoing global economic uncertainty.
Markets south of the border also saw a strong day. On Wall Street, the Dow Jones Industrial Average climbed 254.48 points to finish at 41,368.45. The S&P 500 rose 32.66 points to 5,663.94, and the tech-heavy Nasdaq jumped 189.98 points, ending the day at 17,928.14.
Investor sentiment in the U.S. improved following the announcement of a new trade agreement between the United Kingdom and the United States. The deal will lower certain tariffs between the two countries, with hopes that it may ease fears of an economic slowdown. U.S. President Donald Trump called it a “maxed-out trade deal,” noting that while 10% tariffs would remain on some U.K. goods, items like Rolls-Royce vehicles would see reduced taxes. In exchange, U.S. products like beef and ethanol will have greater access to U.K. markets.
On the currency front, the Canadian dollar weakened slightly, closing at 71.91 cents U.S., down from 72.48 cents the previous day.
In commodities, oil prices rose with the June crude oil contract gaining US$1.84 to settle at US$59.91 per barrel. Natural gas inched up three cents to close at US$3.59 per mmBTU.
However, gold saw a sharp drop. The June gold contract fell US$85.90 to US$3,306 an ounce, as fewer investors moved their money into the safe haven. Copper also slipped slightly, with July contracts down six cents to US$4.60 a pound.
Overall, Thursday’s trading painted a picture of cautious optimism, with energy leading the charge in Canada and trade hopes fuelling gains in the U.S.
