29.08.202513:48:30UTC+00TSX Poised to Renew Record High

The S&P/TSX Composite Index experienced a 0.2% increase, surpassing the 28,450 threshold on Friday. This rise marked progress towards new records and contributed to a weekly gain of approximately 0.5%. The strong conclusion to big-bank earnings reports played a significant role by reducing immediate credit risks and redirecting investments towards rate-sensitive stocks. Major banks like RBC and TD delivered unexpected results with lower provisions and stronger capital markets and fee income, which led to tightened bank credit spreads. This also freed up capital for dividends and buybacks, bolstering the index's rally. Despite this corporate momentum, a softer macroeconomic context emerged after Statistics Canada reported a 0.4% quarterly contraction in real GDP for Q2. This slowdown, driven by trade and investment, led the markets to anticipate earlier easing by the Bank of Canada, subsequently compressing discount rates for equities benefiting from lower financing costs. The financial and energy sectors spearheaded the gains, while tech and healthcare sectors limited the upward movement, allowing the market to reach new intraday highs but remaining cautious ahead of the long weekend.