2025.05.2220:06:50UTC+00TSX Books Slight Gains

On Thursday, the S&P/TSX Composite Index in Canada saw an increase of 0.2%, closing at 25,800. This movement marked a pullback from the record-high achieved earlier on Tuesday, as markets weighed the impact of growing fiscal deficits in the United States. Recently, the US House of Representatives approved a tax bill that is projected to enlarge the US budget deficit by more than anticipated, heightening concerns about the trajectory of US debt following recent credit rating downgrades. These developments exerted pressure on risk assets globally, as bond yields in North America continued to climb. While banks experienced gains, sectors such as energy and utilities faced declines, reflecting the slide in oil prices. The mining sector saw slight downturns, with gold and precious metals facing pressure; notable companies such as Barrick and Teck fell by 0.7% and 0.2%, respectively. In terms of corporate earnings, TD Bank's shares rose by 3.4% after the institution reported stronger-than-expected earnings, although it also indicated the necessity to reserve cash to cover potential bad loans amid the prevailing uncertain economic climate.