30.09.202613:53:56UTC+00TSX Near Flat as Banks Losses Offset Broader Gains

The S&P/TSX Composite Index was little changed on Wednesday, as weakness in financials largely offset gains in mining and energy stocks. Crude prices rebounded amid uncertainty surrounding US–Iran negotiations, bolstering energy producers but weighing on credit-sensitive sectors as concerns over persistent, energy-driven inflation lingered. Canadian Natural Resources, Imperial Oil, and Cenovus each advanced about 1%, while Suncor climbed 1.5%. Most major banks traded slightly below the flatline.

Gold prices also moved higher, providing a lift to mining shares, with Franco-Nevada rising 4%. In macroeconomic news, US PCE inflation came in slightly below expectations, easing some worries about additional interest rate hikes from the Federal Reserve and the Bank of Canada. The personal consumption expenditures price index increased 3.4% year over year, compared with a consensus forecast of 3.7%. The softer-than-anticipated reading helped limit losses in the financial sector as Fed officials continued to track inflation and consumer spending data closely.