FX.co ★ TSX Renews Record High

On Tuesday, the S&P/TSX Composite Index edged up by 0.2%, reaching an unprecedented closing high of 28,616. This performance surpassed that of global counterparts, predominantly driven by the resource-centric nature of the Toronto exchange, which benefited from climbing crude oil and gold prices. Mining titans such as Agnico Eagle, Wheaton Precious Metals, Barrick, and Franco-Nevada experienced gains ranging from 1.4% to 2.8% as gold surged to new record levels. Energy companies like Canadian Natural and Cenovus also increased by 1.4% and 2.5%, respectively. Conversely, technology stocks exerted downward pressure on the index, with Shopify declining by 1.2%. This drop occurred as investors reduced their exposure to growth stocks amid renewed worries about inflated valuations in AI-related software and hardware sectors, seizing the opportunity for profit-taking. Beyond the technology sector, there was a broader market retreat reflecting prudence ahead of anticipated critical Canadian and US labor reports, which are expected to influence monetary policy decisions at the Bank of Canada and the Federal Reserve. In domestic economic indicators, the Purchasing Managers' Index (PMI) for manufacturing in August rose to 48.3 from 46.1 in July but still languished below the 50 threshold for the seventh month in a row.