FX.co ★ TSX Rises Amid Banking Earnings

The S&P/TSX Composite Index experienced an uptick of approximately 0.3%, reaching levels above 31,200 on Thursday. This rise was largely fueled by strong quarterly reports from prominent Canadian banks, indicating a robust banking sector and a resilient economy. TD Bank's shares increased by nearly 1% following its announcement of higher-than-expected earnings and a raised dividend. Meanwhile, CIBC's shares advanced by more than 1.5%, driven by a surge in fourth-quarter profits, boosted by its capital markets segment. However, BMO saw its shares drop by over 2%, despite surpassing profit and revenue forecasts, as investors assessed mixed performance across the banking industry. The major Canadian banks have outperformed the broader TSX this year, shifting towards fee-based, higher-margin operations in response to stagnating loan growth in both personal and commercial banking sectors. Investor optimism has been further bolstered by anticipation of a US interest rate reduction next week. In other market movements, gold prices declined as stronger equities diminished the appeal of this safe-haven asset, and oil prices climbed following renewed Ukrainian attacks on Russian energy infrastructure. Additionally, political risks loom as the US has threatened to withdraw from the CUSMA, potentially pursuing separate trade agreements with Canada and Mexico.