FX.co ★ TSX Falls on Financials and Mining Losses

The S&P/TSX Composite Index declined 0.8% on Monday to close at 36,270, dragged lower by weakness in financials and mining. Renewed tensions in the Middle East heightened inflation worries, while hawkish remarks from Federal Reserve Chair Kevin Warsh reinforced expectations for a rate hike in September.

Major Canadian banks finished in negative territory despite broad expectations that the Bank of Canada will keep rates unchanged on Wednesday. TD Bank slipped 0.6%, while BMO and Scotiabank each lost 1.2%.

Mining stocks also came under pressure as gold prices fell. Agnico Eagle dropped 1.9%, Barrick retreated 2.2%, and Wheaton Precious Metals (WPM) slid 2%. Most technology names followed US hyperscalers lower, with Shopify down 3.8% and Constellation Software off 0.8%.

By contrast, energy producers benefited from higher crude prices. Canadian Natural advanced 2%, and Suncor gained 1.8%.

Despite Monday’s pullback, the TSX rose 1.3% in August, its fifth straight monthly increase.