06.08.202520:03:02UTC+00TSX Climbs to Record Highs

The S&P/TSX Composite Index rose 1.3% to close at 27,921 on Wednesday, reaching new record highs as investors capitalized on last week's slump. Optimism was bolstered by expectations of a September interest rate cut by the Federal Reserve, as well as favorable commodity and earnings reports. Shopify spearheaded the upturn, surging 21.5% following its announcement of a 31% year-over-year increase in second-quarter revenue and a 17% rise in operating income, both surpassing forecasts. The company also provided guidance for third-quarter revenue growth in the mid-to-high 20% range. In contrast, Suncor experienced a decline of 0.3% despite outperforming estimates, as decreasing oil prices adversely affected its energy sector competitors. Thomson Reuters experienced a significant drop of 10.1% as its second-quarter revenue of $1.785 billion fell short of the $1.792 billion consensus, impacted by a 5% reduction due to acquisitions and disposals, which dampened confidence despite earnings per share exceeding analyst predictions and strong core growth. Canada’s private-sector Purchasing Managers' Index (PMI) remained in contraction territory for the eighth consecutive month at 48.7 in July, albeit improving from 44.0 in June, with the manufacturing sector easing to 46.1 and services to 49.3.