Mining & Metals 17h ago
TSX Closer: Index Closes Higher as Battery Metals Gain Offsets Tech Weakness; Gold, Oil Rally The S&P/TSX Composite Index edged higher on Wednesday as gains in battery metals stocks outweighed weakness in technology shares, while investors assessed higher commodity prices, fresh US tariffs on many Canadian imports and corporate earnings.The index closed up 116.03 points, or 0.33%, at 35,485.11, with mixed sectors. Battery Metals Index led gainers, up 6.5%, while Information Technology led decliners, down 2.5%.In commodities, gold traded at a two-week high on Wednesday, climbing for a second-straight session as the US dollar weakened.The precious metal for August delivery was last seen up $60.50, or 1.5%, at $4,136.90 per ounce, the highest level since July 7. However, the metal is down 7.5% since the start of the year.Meanwhile, West Texas Intermediate (WTI) crude oil closed at a six-week high on Wednesday as the US continued attacks on Iran, keeping the Strait of Hormuz closed, while Yemen's Houthi militants threatened to block Saudi oil exports in the Red Sea.WTI crude for September delivery closed up $2.49, or 3%, to settle at $86.83 per barrel, the highest level since June 11, while September Brent crude was last seen up $3.22, or 3.5%, to $94.23.In currencies, Rosenberg Research said there is room for a "modest" recovery in the Canadian dollar during the second half of the year, but the upside for the loonie is capped by structural issues.Some of these issues include eroding competitiveness, weak productivity growth, subdued investment, and ongoing exposure to the uncertainty of US trade policy, a point reinforced by the US announcing 50% tariffs under Section 338, Rosenberg added."This is very much a fading US dollar story rather than a positive Canadian dollar one," Rosenberg said in a note on Wednesday.Analysts, meanwhile, said the latest US tariffs are unlikely to materially derail Canada's growth outlook, although they could still weigh on demand and investor sentiment.This week's new US tariffs are expected to have a limited impact on Canada's growth outlook, reflecting their relatively narrow scope, according to Nomura Global Markets Research on Wednesday.US President Donald Trump's tariffs announced on Monday are set to come into force on Aug. 19 and encompass a broad range of Canadian goods but cover only a small fraction of total Canadian exports to the US, said Nomura."In addition, firms have been adjusting to shifting trade dynamics, which limits the risk of a sharp growth deterioration," wrote the bank in a note.Although the tariffs apply irrespective of US-Mexico-Canada Agreement origin status, broad exemptions for energy, potash, critical minerals and other categories reduce the scope of affected trade, said Nomura. "Only" around $20 billion of annual imports, or 5.3% of US imports from Canada, are expected to be impacted, raising the average effective tariff rate to roughly 5.5% from the current 3%.Corpay's estimates indicate that the new tariff measures would lift the effective tariff rate on Canadian exports to the US to about 7.4%. Although low by historical standards, the higher tariff burden could still weigh on growth and demand for Canadian assets due to the country's reliance on the US markets, wrote Karl Schamotta, Corpay's chief market strategist, in the note.Additionally, UBS Global Research said in a note that this week's new US tariffs are unlikely to materially alter Canada's growth trajectory, given their relatively limited direct economic impact.UBS wrote that it forecasts trade uncertainty to gradually ease, supporting broader growth momentum into late-2026 and 2027.In corporate news, Rogers Communications (RCI-A.TO, RCI-B.TO) reported second quarter adjusted earnings of C$1.15 per diluted share compared to C$1.14 a year earlier. Analysts polled by FactSet expected C$1.13.The telecommunications company said its quarterly revenue stood at C$5.62 billion, compared to C$5.22 billion a year earlier. Analysts expected revenue of C$5.56 billion.
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