08.12.202521:05:00UTC+00TSX Struggles at Week's Start

On Monday, the S&P/TSX Composite Index dipped by 0.5%, closing at 31,170. The decline was primarily driven by weaknesses in the energy and mining sectors, which outweighed gains in the tech industry ahead of upcoming policy announcements from the Bank of Canada and the Federal Reserve. Within the energy sector, companies like Imperial Oil and Cenovus each experienced a downturn of around 2% as oil prices slid by over 2%. Similarly, major mining firms Agnico Eagle and Barrick saw declines of 2.2% and 2.3%, respectively. On the other hand, Celestica, a data-centre supplier, rose sharply by 5.1%, bolstering the index. The unexpectedly robust Canadian employment figures have strengthened market expectations that the Bank of Canada will maintain interest rates this Wednesday. Currently, traders estimate a more than 90% probability of a rate hold, with the next anticipated hike pushed to 2026. Meanwhile, the Federal Reserve is broadly projected to reduce rates in December, but ongoing uncertainty regarding the 2026 policy trajectory has kept investors wary.