TSX REBOUNDS AS MINERS PROVIDE SUPPORT; BOC HOLDS RATES

By Purvi Agarwal

Sept 2 (Reuters) - Canada's main stock index rose on Wednesday, with mining stocks leading the recovery, while investors assessed the impact of elevated bond yields and the Bank of Canada's decision to hold interest rates steady.

The S&P/TSX Composite Index was up 0.7% at 36,068.32 at 10:28 a.m. ET.

• The Bank of Canada left its benchmark rates unchanged at 2.25% as widely expected, but said the risks to inflation had grown while new U.S. tariffs made growth prospects more uncertain.

• "It's going to be a very high bar for the BoC to make a decision one way or another right now, given the uncertainty and how quickly things can change," said Neil Linsdell, head of investment strategy at Raymond James.

• "You don't want to make any kind of decisions that are going to set a precedent for a course on something that can change (as quickly as) this afternoon."

• Still, bets on an interest-rate hike this year inched up to 75% from 64% before the announcement, the swaps market showed.

• The benchmark index rose after three sessions of declines, with the materials sector providing the biggest boost, up 2.6%.

• Miners gained, tracking an uptick in gold and silver prices, with Endeavour Silver up 5.3%, Kinross Gold gaining 3.3% and Barrick Gold adding 2.9%.

• Consumer discretionary shares bounced back from two sessions of declines, aided by a 3.3% rise in shares of sportswear retailer Gildan Activewear.

• Meanwhile, the yield on the 10-year U.S. Treasury was at 4.784%, retreating from early-2025 highs hit in the previous session, while the 10-year Canadian equivalent was at 3.759%.

• Oil prices inched lower despite hitting a one-month high earlier in the session. Energy stocks on the TSX lost 0.8%.

• Prospects of elevated oil prices stemming from the Iran conflict had spurred inflation worries, which have pushed up government bond yields, with markets reassessing interest-rate hike prospects.

• Employment reports in the U.S. and Canada, due later this week, could largely shape monetary policy expectations going forward.

(Reporting by Purvi Agarwal and Darshan Kumar in Bengaluru; Editing by Shreya Biswas)

2026-09-02T14:47:57Z