FX.co ★ TSX Sets Fresh Historic High

The S&P/TSX Composite Index climbed by 1% to reach a new high of 31,478 on Thursday, surpassing its US counterparts after the latest set of bank earnings reinforced the notion of a resilient economy despite ongoing tariff uncertainties. The surge was driven primarily by major financial institutions, with RBC advancing by 2.5%, TD Bank increasing by 2% following better-than-expected results and an announced dividend hike, and CIBC gaining 4.2% due to robust fourth-quarter profits stimulated by capital markets. Meanwhile, BMO remained unchanged even though it exceeded profit and revenue forecasts, as investors evaluated various levels of strength among banks. This year, the leading six banks have outpaced the TSX by pivoting towards fee-based, higher-margin ventures amid stalled loan growth in both retail and commercial banking. The anticipation of a potential US interest rate cut next week has bolstered risk appetite, providing support for equities. In parallel, discussions that the US might withdraw from CUSMA and consider individual agreements with Canada and Mexico have introduced a layer of political risk to the market landscape.