The S&P/TSX Composite Index slipped 0.3% to close at 35,582 on Tuesday, pressured by surging oil prices and elevated bond yields. Yields on 10-year Canadian government bonds moved toward the 4% mark, hovering near their highest levels since 2007. The prospect of higher interest rates weighed on rate-sensitive sectors ahead of the U.S. Federal Reserve’s expected 25-basis-point policy rate hike on Wednesday.
Financials finished lower, with TD Bank down 0.5%, CIBC off 0.6%, and National Bank declining 1.3%. The mining sector also ended mostly in the red, dragged by softer gold prices. Retailers recorded steep losses, as Alimentation Couche-Tard (ATD) fell 2.7% and Loblaw dropped 2.3%.
Meanwhile, Prime Minister Mark Carney announced immediate tax write-offs for most new capital investments, aiming to stimulate economic growth and draw in foreign capital. Carney is hosting dozens of global investors in Toronto this week to promote investment in strategic projects, against the backdrop of ongoing trade tensions with the United States.
