TSX ends higher, inches closer to record high

Published 26/06/2025, 12:04
Updated 26/06/2025, 21:28
© Reuters

Investing.com - Canada’s main stock exchange closed higher on Thursday hovering back around record high after the commodity-heavy index edged down from it in the prior session.

The S&P/TSX composite index was up by 0.7%, gaining 185 points to be at 26,751.95. It had notched a fresh all-time peak on Tuesday.

A ceasefire between Israel and Iran helped soothe market sentiment, but dented stocks exposed to gold, an asset traditionally viewed as a safe haven in times of economic or geopolitical uncertainty.

Ructions on Wall Street this year have helped to underpin bullion over much of 2025, bolstering gold stocks and helping protect the TSX from the volatility. Yet some analysts are now wondering if the ceasefire and easing global trade tensions may indicate a more calm environment ahead for financial markets.

High-growth stocks, such as mega-cap tech firms, could be boosted against this backdrop. This would benefit major U.S. benchmarks like the S&P 500 that have heavier weighting with these firms than the TSX does.

U.S. stocks up

U.S. stocks edged higher, as investors assessed the Israel-Iran truce. 

At close, the Dow Jones Industrial Average jumped 404 points, or 0.94%, to 43,386.84, S&P 500 gained 0.85% at 6,143.70 and the NASDAQ Composite gained or 0.97%, to 20,167.91.

Trump slams Powell

Tensions in the Middle East seemed to be calming, with the ceasefire between Israel and Iran appearing to hold, and the U.S. planning to meet with Iran next week.

With this in mind, attention is now turning to the state of the U.S. economy and the likely response from the Federal Reserve.

May’s personal consumption expenditures price index reading, the Fed’s preferred gauge of inflation, is due out on Friday, and will be studied carefully for clues over when the U.S. central bank next easing monetary policy.

Federal Reserve Chair Jerome Powell maintained a wait-and-see approach to future interest rate decisions in his comments to Congressional lawmakers this week, saying this strategy is appropriate until more clarity emerges around the impact of aggressive U.S. tariffs on the broader economy.

This stance prompted further vitriol from President Donald Trump, who has been persistently calling for lower interest rates.

“I know, within three or four people, who I’m going to pick,” Trump said, talking about a replacement for Powell. “He goes out pretty soon fortunately, because I think he’s terrible.”

A report from the Wall Street Journal said Trump has toyed with the idea of naming Powell’s replacement as early as September, which could undermine Powell’s authority for the remainder of his term to next May.

Oil rises after drop in inventories

Crude prices rose, adding to the previous session’s gains, as a larger-than-expected draw in U.S. crude stocks signalled firm demand from the world’s largest consumer.

At 4.05 ET, Brent futures climbed 0.63% to $65.36 a barrel and U.S. West Texas Intermediate crude futures rose 0.71% to $65.38 a barrel.

Both benchmarks climbed nearly 1% on Wednesday, recovering from early-week losses after data showing {{8849|U.S. crcrude oil inventories falling for a fifth straight week, indicating resilient demand in the world’s largest economy.

U.S. crude inventories fell by 5.8 million barrels, the Energy Information Administration said on Wednesday, and gasoline stocks unexpectedly fell by 2.1 million barrels, as gasoline supplied, a proxy for demand, rose to its highest since December 2021.

Gold slightly low

Gold prices were trading slightly down, even with a weaker dollar after Trump criticised Powell and called for lower interest rates.

Spot gold had moved down by 0.08% to $3,329.51 an ounce, while gold futures for August were flat at $3,343.12 /oz by 4.05 ET.

Bullion saw sharp losses earlier in the week after Trump announced the Israel-Iran ceasefire, eroding the appeal for safe-haven assets.

Meanwhile, platinum prices remained at their highest level in over a decade. The precious metal has climbed nearly 9% this week and 30% in June so far, fueled by strong demand and tightening supply.

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