S&P/TSX Composite Index

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.

S&P/TSX Composite Index up 190 points at Midday

The S&P/TSX Composite Index rose 190 points at midday Wednesday despite rising trade tensions with the United States after Monday's announcement of additional US 50% tariffs on some Canadian goods.The mining sector has added 2.2%, making it the best performer, followed by energy, up 1%. Oil is trading at a six-week high as the U.S and Iran hostilities continue.Info tech is the worst performer, down 2.7% at midday.

TSX Closer: The Index Rises as Commodity Gains Offset US-Canada Trade Tensions

The S&P/TSX Composite Index rose sharply on Tuesday as gains in base metals stocks and higher gold and oil prices outweighed concerns over escalating trade tensions between Canada and the United States.The index closed up 408.76 points, or 1.17%, to 35,369.08, with the majority of sectors closing higher. Base Metals led gainers, up 5.39%, while Telecom led decliners, down 0.31%.In commodities, gold traded higher on Tuesday, rising for a second-straight session after finding support at the $4,000 mark despite a stronger US dollar and higher Treasury yields. The precious metal for August delivery was last seen up $74.50, or 1.86%, to $4,090.40 per ounce.Meanwhile, West Texas Intermediate (WTI) crude oil rose on Tuesday, climbing for a third straight session as fighting between Iran and the US continues to constrain Persian Gulf supply.WTI crude oil for August delivery closed up $1.68, or 2%, to settle at $84.91 per barrel, while September Brent was last seen up $1.70, or 1.9%, to $90.92.Trade tensions also remained in focus after the United States unveiled a new 50% tariff on a broad range of Canadian goods late Monday.In response, Prime Minister Mark Carney reiterated Canada's support for free and fair trade. The prime minister said the government remains committed to taking all necessary steps to build economic resilience and protect the interests of Canadian workers, farmers, businesses and families.Carney said Tuesday that he and President Trump agreed during a morning phone call to intensify trade negotiations in the coming weeks, CTV News reported.Ontario Premier Doug Ford on Tuesday said Canada vows to stand firm and defend its interests amid rising tensions with its biggest trading partner."Together, we'll stand united. We'll never back down. We'll never roll over," Ford wrote in a X post.Using Section 338 of the Tariff Act of 1930, the US administration accused Canada of unfairly discriminating against American products in sectors including dairy, alcoholic beverages and autos. The affected goods will lose US-Mexico-Canada Agreement exemption eligibility, with the new tariffs set to take effect in 30 days.The White House said that by doing so, President Trump is offsetting the burden and disadvantage on US commerce from Canada's discriminatory treatment and is leveling the playing field for crucial American exports - cars, alcohol, and dairy.Citing an example, White House said Canada imposes certain tariffs and quotas on cars imported to Canada from the United States, but not on imports from other countries. From April 2025 through March 2026, Canadian imports of US motor vehicles decreased by approximately 22% annually, or $5.6 billion.Corpay's rough estimates suggest that the overall increase in potential levies would amount to around $19.1 billion, equivalent to 4.6% of Canada's US exports, implying that the average tariff rate applied to Canadian goods could rise by about 2.3 percentage points."This would undoubtedly be painful for the affected Canadian industrial sectors, but should be substantially less damaging to the economy than initially feared," wrote Karl Schamotta, Corpay's chief market strategist, in a late Monday note.Commerzbank said the Canadian dollar's initial reaction to Monday's White House new tariff announcement was relatively muted, but the US trade dispute will drive the Canadian dollar outlook."Given the multitude of threats Donald Trump has made in recent months - not all of which have been carried out - the muted reaction seems reasonable for now," wrote Commerzbank FX and Commodity Analyst Volkmar Baur in the note. That said, the move introduces renewed uncertainty for the Canadian dollar, with the loss of preferential treatment for affected products under the US-Mexico-Canada Agreement potentially weighing on exports and keeping trade tensions in focus for currency markets, he added.Whereas CIBC Economics said the latest US tariff announcement is not large enough to change its outlook for the Bank of Canada. The measures affect just under 5.5% of Canada's exports to the United States and would lift the average Canada-US tariff rate by slightly more than 2.5 percentage points."We see this as a sector-specific development rather than a broad macroeconomic story, though it is clearly significant for the industries directly affected," wrote CIBC's Benjamin Tal in the note.

S&P/TSX Composite Index Jumps 320 Points at Midday, Led by Miners

The S&P/TSX Composite Index rose 320 points at midday Tuesday with the mining sector adding 5%, making it the best performer, followed by energy, up 1.7%.The weakest sectors are telecoms and utilities, down 0.4% and 0.3%, respectively.In economic news, the US is imposing 50% tariffs on $20 billion of Canadian goods, including on some CUSMA-compliant products. The tariffs are expected to come into force on Aug. 19. In a statement, Prime Minister Mark Carney said: "Canada has made a series of detailed and comprehensive proposals to resolve this dispute and to modernise CUSMA. We stand ready to intensify those discussions in the coming weeks."Magellan Aerospace (MAl.TO) shares are up 8.8% to C$35.00 after it was awarded a government contract to produce the M-72 Light Anti-Tank Weapon under Canada's Munitions Supply Program.

TSX Closer: Index Edges Lower as Financials Weigh, Investors Assess Softer Canadian Inflation

The S&P/TSX Composite Index fell on Monday as a decline in financial shares outweighed gains in technology, while investors assessed softer-than-expected Canadian inflation data and ongoing geopolitical tensions in the Middle East.The index closed down 303.53 points, or 0.9%, at 34,960.32, with mixed sectors. Information Technology led gainers, up 0.7%, while Financial led decliners, down 1.9%.In commodities, gold was steady on Monday, holding above $4,000 despite a stronger US dollar and rising bond yields. The precious metal for August delivery was last seen down $8.80 to $4,010.00 per ounce.Gold prices have been buffeted by the rise in oil prices that followed the US war on Iran, raising worries central banks will need to raise interest rates due to energy inflation.Meanwhile, West Texas Intermediate (WTI) crude oil closed higher on Monday, with continued fighting between Iran and the US offsetting reports that talks between the two countries may resume.WTI crude oil for August delivery closed up $0.74, or 0.9%, to settle at $83.23 per barrel, while September Brent crude was last seen up $1.08, or 1.2%, to $89.18. The rise comes despite reports that Iran remains open to a negotiated settlement to the war that was launched by the US and Israel on Feb. 28.On the economic front, investors also weighed the latest Canadian inflation data that showed price pressures eased more than expected in June.Canada's consumer price index (CPI) rose 2.8% year over year in June, easing from a 3.2% annual increase in May, reflecting a sharp decline in oil prices, said the country's statistical agency on Monday. June CPI was a tad lower than the 2.9% consensus. Excluding gasoline, inflation remained unchanged at 2.2% annually."While gasoline prices remained elevated due to the conflict in the Middle East, diplomatic talks and an interim ceasefire arrangement contributed to an easing of global oil prices in June, leading to a 10.2% month-over-month decline," added the Ottawa-based agency.The non-seasonally adjusted CPI declined 0.4% in June, marking the largest monthly drop since December 2024. On a seasonally adjusted basis, CPI fell 0.1% month over month, the first decline since April 2025.While higher oil and energy prices, including a recent uptick in gasoline prices, pose some upside risk, excess economic slack continues to weigh on underlying inflation, said Benjamin Reitzes, Canadian Rates and Macro strategist at Bank of Montreal Capital Markets in a note after CPI data."This will keep the BoC comfortably on the sidelines, where we expect them to stay through at least the rest of this year," Reitzes wrote.CIBC, Desjardins, TD Economics and KPMG Canada all forecast Canada's central bank to be on hold for at least this year."It looks like we'll be stuck with headline inflation at 3% and core inflation at 2% for some time yet," wrote Ali Jaffery, chief economist at KPMG Canada. "The Bank of Canada can live with that as long as inflation expectations remain manageable, which we expect they will."Meanwhile, National Bank of Canada said the municipal and local government authority (MLGA) bond market continued to expand in the first half of 2026, supported by robust infrastructure spending and strong investor demand. The bank said MLGA bond issuance topped C$6 billion in the first six months of the year, up about 40% from a year earlier, with full-year supply expected to surpass the record C$8.7 billion issued in 2025.National Bank added that the sector continues to benefit from strong credit quality, with ratings generally higher and more stable than provincial peers despite rapid supply growth. The bank also said the expanding market is providing investors with a larger pool of high-quality, increasingly liquid securities.In corporate news, Air Canada (AC.TO) on Monday said it is investing C$13.7 million through a jointly funded Sustainability Co-Investment Platform with Airbus to support a sustainable aviation fuel (SAF) industry in Canada.Key areas include accelerating a Canadian SAF project toward a final investment decision. While Air Canada and Airbus intend to drive this investment, both companies hope to spur government partners to support large-scale SAF production in Canada.Additionally, The Canadian Press reported that Enbridge (ENB.TO) started construction on its C$4 billion Sunrise Expansion Program, a natural gas pipeline project in British Columbia that received federal approval in April.The expansion will increase the province's gas transmission capacity by 300 million cubic feet per day, helping supply liquefied natural gas export terminals on Canada's West Coast while continuing to serve domestic demand, CP reported.

S&P/TSX Composite Index Falls 27 Points at Midday as Financials Weigh

The S&P/TSX Composite Index dropped 27 points at midday Monday, with the financials sector as the weakest performer.The financials sector was down 1.23% at midday followed by healthcare, down 1%.The technology sector was the best performer and up 2.4%, followed by base metals (+0.8%).In economic news, Canada's June consumer price index increased 2.8% year-over-year, on the heels of a 3.2% increase in May, Statistics Canada said Monday. This marked a month-over-month drop of 0.4%, the largest monthly decline since December 2024.In stocks, Bridgemarq Real Estate Services (BRE.TO) extended steep losses from the prior session and fell 21% to C$4.98. The decline came after the company announced Friday it had changed its policy to a quarterly dividend of C$0.05 annualized from a monthly dividend of C$0.113.Hut8 (HUT.TO) shares jumped 12.7% to C$144.40, after the company sealed a lease agreement for its Beacon Point AI data center campus in Texas.

Canada Inflation Slows a Tad More Than Expected in June Amid Easing Oil Prices

Canada's consumer price index (CPI) rose 2.8% year over year in June, easing from a 3.2% annual increase in May, reflecting a sharp decline in oil prices, said the country's statistical agency on Monday.June CPI was a tad lower than the 2.9% yearly consensus figure provided by MUFG before the data was released by Statistics Canada.Gasoline prices increased at a slower year-over-year pace in June than in May, helping to ease headline CPI, said StatsCan. Excluding gasoline, inflation remained unchanged at 2.2% annually."While gasoline prices remained elevated due to the conflict in the Middle East, diplomatic talks and an interim ceasefire arrangement contributed to an easing of global oil prices in June, leading to a 10.2% month-over-month decline," added the Ottawa-based agency.The non-seasonally adjusted CPI declined 0.4% in June, marking the largest monthly drop since December 2024. On a seasonally adjusted basis, CPI fell 0.1% month over month, the first decline since April 2025.Traveller accommodation prices accelerated in June, rising 10.1% annually compared with 2.5% in May, driven by higher costs in Ontario and British Columbia, particularly in Toronto and Vancouver during World Cup events, added StatsCan. Passenger vehicle rental prices also increased 6.8% annually amid stronger travel demand.The monthly and quarterly CPI reports, reported by Statistics Canada, measure the index level of prices paid by consumers for a basket of goods and services such as food, energy, vehicle, medical care, apparel, and housing. The core measure, which excludes food and energy due to their volatility, is closely watched by markets and the Bank of Canada as a sign of underlying inflation pressures.

Canada CPI Excluding Gasoline at 2.2% Y/Y in June

Canada's June CPI Down 0.4% M/M Non-Seasonally Adjusted; Down 0.1% M/M Seasonally Adjusted

Canada's CPI at 2.8% Y/Y in June

TSX Closer: Index Ends Lower as Battery Metals Weigh Despite Oil-Driven Energy Rally

The S&P/TSX Composite Index fell on Friday as losses across most sectors were led by battery metals that outweighed gains in energy markets, while investors monitored escalating tensions in the Middle East and higher oil prices.The index closed down 76.30 points, or 0.22%, at 35,263.85, with the majority of sectors closing lower. Energy led gainers, up 1.91%, while Battery Metals Index led decliners, down 4.51%.In commodities, gold traded higher at last look on Friday, rebounding from early lows as the dollar held steady and Treasury yields were mixed. This came even as oil prices moved higher following renewed fighting between Iran and the US that revived inflation concerns.The precious metal for August delivery was last seen up 0.67% to $4,018.80 after touching the lowest level since Nov. 6.Meanwhile, West Texas Intermediate (WTI) crude oil closed at a five-week high on Friday as fresh fighting between the US and Iran kept the Strait of Hormuz closed. WTI crude oil for August delivery closed up 4.5% to settle at $82.49 per barrel, the highest since June 12, while September Brent crude was last seen up 4.4% to $87.96.The gains followed reports that US forces struck bridges around Iran's port city of Bandar Abbas, according to The Wall Street Journal. Iran responded with attacks on neighboring countries and strikes on ships in the Persian Gulf.In currencies, the Canadian dollar has been one of the strongest major currencies this week, as it started to recover from technically oversold levels. Traders now expected the Canadian dollar to strengthen enough that the US dollar could fall toward C$1.40, Corpay said in a report released on Friday.Next week's inflation data release is unlikely to change the loonie's outlook materially, given that its direction has not been set by shifts in Canadian monetary policy expectations for some time, and that a soft inflation print will do little to alter the rate differentials that matter, wrote Corpay Chief Market Strategist Karl Schamotta in a note.Separately, Statistics Canada data showed international securities transactions resulted in a C$14.4 billion net outflow of funds from the Canadian economy in May, marking the first net outflow since February.The turnaround followed a sizable inflow in April, as weaker international purchases of Canadian securities coincided with increased investment by Canadians in overseas assets, wrote StatsCan in a statement.International investors purchased C$7.9 billion of Canadian securities in May, extending the investment streak to five consecutive months. Inflows were driven primarily by Canadian bonds (C$18 billion) and money market instruments (C$6 billion), while a C$16.1 billion reduction in holdings of Canadian equities partially offset the overall gains.Turning to automobiles, Bank of Montreal Capital Markets said Canada's zero-emission vehicle market remained resilient in May, with sales up nearly 20% from a year earlier despite signs of slowing growth. The bank contrasted that with the US, where its ZEV sales declined about 18% year over year following the expiration of federal tax credits.Additionally, BMO noted that the key trend in the Canadian housing market continues to be the widening divergence between rental and ownership construction.Across Canada's major census metropolitan areas, combined condominium and ownership housing starts have fallen to their lowest level since the 2009 recession, added the bank. In contrast, rental housing starts continued to hover near record highs, wrote BMO Senior Economist Robert Kavcic in a note after the release of Canada Mortgage and Housing Corporation's data on Thursday.

S&P/TSX Composite Index Falls 30 Points at Midday as Tech Stocks Weigh

The S&P/TSX Composite index dropped 30 points in choppy trade at midday Friday, with the technology sector as the worst performer.The technology sector was down 1.6% at midday followed by miners, down 0.4%.Limiting losses were gains in healthcare (+0.8%) and energy (+0.8%). Oil prices were higher as ongoing hostilities between Iran and the US keep the Strait of Hormuz closed.In stocks, Bridgemarq Real Estate Services (BRE.TO) tumbled 49% to a record low at C$6.02 after announcing it changed its policy to a quarterly dividend of C$0.05 annualized from a monthly dividend of C$0.113.

TSX Closer: Index Falls as Base Metals Retreat, Investors Weigh Housing Starts and BoC Outlook

The S&P/TSX Composite Index fell on Thursday as declines in base metals and financial shares outweighed gains in industrials, while investors assessed weaker-than-expected housing starts data and the outlook for Bank of Canada interest rates.The index closed down 76.05 points, or 0.2%, at 35,340.15, with mixed sectors.Industrials led gainers, up 2.2%, while base Metals led decliners, down 4%.In commodities, gold fell on Thursday as the dollar and yields rose after a report showed US retail sales slowed in June.The precious metal for August delivery was last seen down $65.30, or 1.6%, to $3,986.50 per ounce. Retail sales rose by 0.2% monthly in June, down from a rise of 1% in May and matching the consensus estimate, according to MarketWatch.Meanwhile, West Texas Intermediate (WTI) closed lower on Thursday, even as escalating violence between the US and Iran kept the Strait of Hormuz closed. WTI crude oil for August delivery closed down 0.8% to settle at $78.95 per barrel, falling off the highest since June 15, while September Brent oil was last seen down 0.8% to $84.72.In currencies, Commerzbank said the recent moves in the loonie have been driven primarily by broad-based US dollar weakness rather than Canada-specific developments.Meanwhile, Canada Mortgage and Housing Corporation (CMHC) said Thursday that this year's housing starts in the country are expected to fall below last year's levels as elevated uncertainty, higher development costs, weaker demand and rising inventories continue to weigh on new construction activity.The pace of housing starts in the first half of the year was below last year's level, reflecting weaker market conditions, said CMHC's Deputy Chief Economist Kevin Hughes in a note. The seasonally adjusted annualized rate of housing starts declined 6% in June to 238,971 units, down from 253,083 units in May, added CMHC. This figure was less than the consensus figure of 256,000 provided by MUFG Global Markets Research.While the recent removal of the Harmonized Sales Tax on new builds in Ontario could support demand, the impact is unlikely to be felt until next year or 2028, given the typical lag between pre-sales and construction starts, TD Economics wrote in a note after CMHC's report on Thursday."Q2 activity was broadly in line with Q1, undershooting our expectation for a mild pickup," wrote TD Economist Marc Ercolao in the note.Analysts continued to assess the outlook for Canadian interest rates following Wednesday's Bank of Canada policy decision.The BoC is expected to remain on hold this year and hike rates in the second half of 2027, despite a more optimistic tone from policymakers on the domestic economic outlook, according to a UBS Global Research note.UBS admitted in the note published for the media on Thursday that growth could improve and broaden toward the end of the year and into 2027. However, the bank remains cautious about ongoing uncertainty surrounding the US-Mexico-Canada Agreement review, which has effectively shifted toward a trade deal renegotiation process and introduces additional risks for the outlook.Additionally, Rosenberg Research was surprised by the BoC's notably more upbeat assessment of the country's economy in Wednesday's policy statement. Canada's central bank kept its policy rate unchanged at 2.25% but upgraded its economic outlook, expressing greater confidence that a sustained recovery is taking place, said Rosenberg Research in a note Thursday.Despite the stronger growth outlook, the shift doesn't indicate an imminent move toward tighter policy, according to Rosenberg. The BoC continues to expect inflation to decline as growth improves, noting that "economic slack will be gradually absorbed" through 2028.

S&P/TSX Composite Index Down Nearly 80 Points at Midday

The S&P/TSX Composite index was down nearly 80 points in choppy trade at midday, with the mining sector the worst performer.The mining sector is down 3.5%, as precious metals prices also trade lower.The best performers are industrials (+2%) and telecoms (+1.8%).In economic news, Canadian housing starts this year are expected to fall below last year's levels, as elevated uncertainty, higher development costs, weaker demand and rising unsold inventories continue to weigh on new construction activity, Canada Mortgage and Housing Corporation (CMHC) said Thursday.

TSX Closer: The Index Closes Higher as Financials, Battery Metals Gain; BoC Holds Rates Steady

The Toronto Stock Exchange rose on Wednesday as gains in financial and battery metals shares outweighed weakness in technology and base metals, while investors assessed the Bank of Canada's decision to leave interest rates unchanged and mixed domestic economic data.The S&P/TSX Composite Index closed up 95.66 points, or 0.27%, to 35,416.20, with mixed sectors.Battery Metals Index led gainers, up 4.54%, with Health Care, Industrials, Telecom, and Financial, up 0.08%, 0.27%, 1.28%, and 1.57%, respectively. Base Metals led decliners, down 1.83%, while Information and Technology, down 1.77%, Utilities, down 0.05%, and Energy, down 0.45%.In commodities, gold edged lower on Wednesday even as the dollar and treasury yields fell after the US reported an unexpected drop in wholesale price inflation last month. The precious metal for August delivery was last seen down 0.5% to $4,049.80 per ounce.Earlier, the US Bureau of Labor Statistics reported the Producer Price Index fell by 0.3% monthly in June, down from a rise of 0.6% in May and under expectations for a flat reading, according to MarketWatch.Meanwhile, West Texas Intermediate (WTI) crude oil rose to a one-month high on Wednesday as fighting between the US and Iran intensified, keeping the Strait of Hormuz blocked. WTI crude oil for August delivery closed up $0.26, or 0.3%, to settle at $79.71 per barrel, the highest since June 15, while September Brent oil was last seen down $7.70, or 0.2%, to $84.71.Investors also weighed the Bank of Canada's decision to hold rates steady and its outlook for inflation and economic growth. The BoC left its policy rate unchanged on Wednesday, in line with expectations, maintaining a cautious approach as policymakers assessed a mixed economic outlook and easing inflation pressures.This was the sixth policy meeting in which Canada's central bank held its target for the overnight rate at 2.25%, with the Bank Rate at 2.5% and the deposit rate at 2.20%. The BoC's message is that it can remain patient, allowing time to assess incoming economic data before making any further policy adjustments, but stressing it can either cut or hike rates as the situation requires."Governing Council judges the current policy rate remains appropriate to sustain the economic recovery and bring inflation back to the 2% target," the BoC wrote in its policy statement, adding it's "prepared to adjust monetary policy as needed".Governor Tiff Macklem said the key messages were that Canada's growth has resumed after a year of stagnation, supported by resilient consumers and adaptable businesses despite US trade pressures. He added the central bank's base case is that inflation will gradually ease, but it is ready to hike rates if high energy prices pass through to other sectors.The BoC is "ready" to hike rates, even in consecutive moves, if the inflation situation requires it, the governor said in a press conference.Economists predict the central bank will remain on hold through the rest of 2026."It doesn't seem like the Bank is in any rush whatsoever to move off the sidelines, even if their rhetoric leans slightly hawkish," wrote Bank of Montreal Capital Markets Chief Economist Douglas Porter. "The Bank's tone around the economic outlook was a tad more upbeat, with plenty of suggestions that growth was turning the corner."The BoC's "message remains one of patience," wrote TD Economics' Maria Solovieva, adding she continues to see the central bank on hold this year. The BoC's statement suggests growing confidence in the economy, adding that the Governing Council will continue to assess its "strength" when considering future rate decisions. While this suggests the recovery is gaining traction, it doesn't signal imminent rate hikes, with economic slack remaining substantial.Additionally, Canadian manufacturing sales rose 1.3% month over month in May to a record C$78.1 billion, marking a fourth straight monthly gain, Statistics Canada said on Wednesday.Sales rose in 14 of 21 subsectors, led by monthly gains in transportation equipment, which was up 4.1% and chemicals, gaining 4.6%, according to Statistics Canada. The largest decline was in electrical equipment, appliances and components, which fell 5.8% on the month.However, Canadian wholesale sales were flat in May at C$90.0 billion after a 1.4% gain in April, with declines in four of seven subsectors, according to StatsCan. The largest declines came from food, beverage and tobacco as well as personal and household goods, which were partly offset by a jump in non-agricultural chemical and allied product sales, the Ottawa-based agency added.

TSX up 14 Points at Midday With Commodities The Worst Performers

The Toronto Stock Exchange is up just 14 points at midday on Wednesday in choppy trade, with the telecoms and financials sectors the best performers.Limiting gains are the materials and energy sectors, down 2.7% and 1.4%, respectively.In economic news, the Bank of Canada kept the benchmark rate at 2.25%. The bank noted in a statement that "sources of economic growth appear to be broadening". It projects the economy will grow by 1.8% in both 2027 and 2028.In stocks, battery manufacturer Electrovaya (ELVA.TO) shares surged over 40% to a record high of C$15.79 after it announced a commercial deal with Amazon (AMZN) for the use of its infinity battery technology in Amazon's material handling operations.

Bank of Canada's Press Conference on Policy Decision Ends

Bank of Canada Governor Says Canadian Dollar's Depreciation Not A Major Factor in Its Policy Decision

Bank of Canada Governor Says Its Base Case Is That Inflation Will "Gradually" Ease

Bank of Canada's Policy Decision Press Conference With Governor Macklem Starts