The S&P/TSX Composite Index closed at a record high on Tuesday as gains in base metals and financial stocks lifted the benchmark, outweighing weakness in energy shares as oil prices fell sharply, while investors assessed Canada's latest retaliatory tariffs against the US.
The index closed up 243.51 points, or 0.7%, to 36,957.63, with mixed sectors. Base Metals led gainers, up 2.3%, while Financial was up 1.8%. Energy led decliners, down 2.6%.
The Battery Metals Index, which includes companies listed both on the TSX and TSX Venture Exchange, jumped 0.4%.
In commodities, West Texas Intermediate (WTI) and Brent crude fell sharply on Tuesday as investors assessed the latest US sanctions against Iran, with the measures seen as posing less risk to global oil supplies than further military escalation.
October WTI crude oil contract settled down $2.65, or 3.1%, at $82.36 per barrel, while October Brent oil was last seen down $3.85, or 4.2%, at $88.32 per barrel.
Meanwhile, December Comex gold futures gained 0.5%, or $22.00, to $4,719.80 per ounce at last look.
In currencies, the US dollar edged lower 0.1% against the Canadian dollar, with USD/CAD at 1.3830 at last look.
On the trade front, Canada announced dollar-for-dollar retaliatory tariffs on C$27.6 billion of US goods and unveiled a C$7.5 billion support package for businesses and workers affected by the escalating trade dispute.
The counter-tariffs, effective Sept. 8, will range from 15% to 50% and target about 700 products, including steel, dairy, appliances, agricultural equipment, pulp and paper, and electronics, mirroring sectors hit by the latest US tariffs.
In economics news, Canada's preliminary wholesale trade, excluding oil and related products as well as oilseeds and grains, fell 0.6% monthly in July, according to the country's statistical agency on Tuesday. The advance estimate was driven mainly by weaker sales of agricultural supplies, minerals, ores and precious metal industry groups within the miscellaneous subsector, said Statistics Canada in a statement.
In stocks, Jefferies rated Bank of Montreal (BMO.TO, BMO) hold, with a C$225 price target implying about 6.2% downside from its C$239.94 share price at close on Tuesday.
BMO on Tuesday reported adjusted earnings per share of C$3.96, beating consensus of C$3.77 and Jefferies' estimate of C$3.89. The lender reported a "solid beat" driven by strong performances within its operating segments, and the strength of its US retail bank in particular, Jefferies said in a Tuesday note.
Meanwhile, Scotiabank closed 7% higher on Tuesday after reporting Q2 adjusted earnings per share of C$2.28, beating the consensus estimate of C$2.10, earlier in the day.