FX.co ★ TSX Edges Lower as Yields Rise

The S&P/TSX Composite Index inched lower on Tuesday, slipping below the 36,000 mark as surging oil prices and rising bond yields pressured equities. Yields on 10-year Canadian government bonds moved toward the 4% level, hovering near their highest point since 2007. The outlook for higher interest rates weighed on rate-sensitive sectors ahead of Wednesday’s expected 25-basis-point increase in the Federal Reserve’s policy rate.

Financials retreated, with Royal Bank of Canada falling more than 0.5%, while Toronto-Dominion Bank, Bank of Montreal, Scotiabank, and CIBC each lost around 1%. Gold prices also declined, dragging on mining stocks: Agnico Eagle Mines and Wheaton Precious Metals both slipped more than 0.5%.

On the political and investment front, Canadian Prime Minister Mark Carney is hosting dozens of international investors in Toronto this week, seeking to channel capital into projects deemed critical to bolstering Canada’s economy amid the ongoing trade war with the United States.