- TSX Composite closed at 35,750 (+0.51%), powered by financials and industrials despite energy and metals headwinds.
- WTI crude collapsed 4.35% to US$79.02/bbl after an EIA inventory build of 3.2 million barrels shocked markets Tuesday morning.
- Cenovus Energy fell 3.8% and Suncor dropped 3.2%, while CN Rail surged 2.1% on a TD Securities upgrade and raised price target.
- Shopify reports Q2 earnings Wednesday pre-market; Bank of Canada Business Outlook Survey also drops at 10:30 AM ET.
The S&P/TSX Composite Index closed Tuesday at 35,750, up 182 points (+0.51%), as strength in Canadian financials and industrials absorbed a brutal selloff in energy and precious metals. Volume came in above the 30-day average, suggesting conviction behind the advance rather than a thin-market drift. South of the border, the S&P 500 added a modest 0.21% to 7,429 while the NASDAQ slipped 0.22% to 24,877, weighed down by late-session pressure on high-multiple tech names.
Winners: Financials and Industrials Lead the Charge
The TSX’s big banks were the day’s backbone. Royal Bank of Canada (RY.TO) gained 1.4%, closing at a fresh 52-week high, after its wealth management division reported stronger-than-expected net new assets for Q2. Canadian National Railway (CNR.TO) jumped 2.1% following an analyst upgrade at TD Securities, which cited improving cross-border freight volumes and raised its price target to C$215 from C$195. The industrials sector as a whole added 1.8%, its best single-day performance since early May.
Losers: Energy and Precious Metals Take the Hit
WTI crude’s 4.35% plunge to US$79.02 per barrel (roughly C$108.50 at today’s exchange rate) was the session’s defining story. Brent fell even harder, dropping 5.05% to US$83.90. The trigger: a surprise build in U.S. crude inventories reported by the EIA this morning, combined with renewed demand-growth concerns after China’s July PMI data disappointed overnight. Cenovus Energy (CVE.TO) dropped 3.8% to C$24.10, and Suncor Energy (SU.TO) shed 3.2% to C$57.40 — both among the TSX’s most actively traded names by volume today.
Gold’s retreat to US$4,026.20 per ounce (-1.19%) and silver’s sharper 1.88% slide to US$57.38/oz dragged the materials sector lower. Barrick Gold (ABX.TO) fell 2.3% and First Majestic Silver (FR.TO) dropped 4.1%, as profit-taking accelerated into the close. Copper held near flat at US$6.3360/lb (-0.05%), providing limited buffer for base-metals names.
The Key Catalyst: EIA Inventory Data Blindsides Oil Bulls
The U.S. Energy Information Administration reported a crude inventory build of approximately 3.2 million barrels for the week ending July 25 — well above the consensus estimate of a 1.1-million-barrel draw. That single data point repriced the entire energy complex within minutes of the 10:30 AM ET release. Analysts at Peters & Co. noted in a midday flash that WTI breaking below the US$80 support level opens technical risk toward the US$75–$76 range if demand signals from Asia don’t improve before Friday’s close.
What to Watch Wednesday, July 29
The Bank of Canada releases its Business Outlook Survey at 10:30 AM ET — a key input for rate-path expectations heading into the September policy decision. On the earnings front, Shopify (SHOP.TO) reports Q2 results before the bell; Bay Street consensus is looking for revenue of US$2.47 billion and adjusted EPS of US$0.38. Overnight, watch for Japan’s industrial production print and any follow-through selling in Asian energy equities that could set the tone for TSX energy names at Wednesday’s open.
