CANADA STOCKS-TSX hits 10-week low as mining shares fall

By Darshan Kumar R and Fergal Smith

TORONTO, Oct 1 (Reuters) - Canada's main stock index fell to a 10-week low on Thursday as metal mining shares lost ground, but a pullback in bond yields helped limit the index's decline.

The Toronto Stock Exchange's S&P/TSX Composite Index .GSPTSE ended down 81.11 points, or 0.2%, at 35,154.76, its lowest closing level since July 20.

• US stocks recovered from early losses to close higher as a global bond sell-off reversed course after sending US Treasury yields to multi-decade highs.

• "The market leadership remains concentrated in technology, whereas the outlook for materials will largely depend on whether the recent strength in the US dollar begins to fade," said Allan Small, senior investment advisor of Allan Small Financial Group with iA Private Wealth.

• The US dollar touched its highest level since April 2025 against a basket of major currencies, helped by recent signs of strength in the US economy.

• The materials group .GSPTTMT, which includes metal mining shares, lost 1.2%, with shares of DPM Metals DPM.TO down 8.9% after a court ruling on a concession agreement in Bosnia and Herzegovina.

• Industrials .GSPTTIN fell 0.9% and heavily weighted financials .SPTTFS ended 0.3% lower.

• Three of the 10 major sectors ended higher, including technology .SPTTTK, which added 2%.

• Energy .SPTTEN was up 1.4%. U.S. crude oil futures settled 2.7% higher at $92.87 a barrel after a report said the US was sending more troops and carriers to the Middle East.

• Domestic data showed that the manufacturing sector grew at its slowest pace in six months in September as trade frictions and higher energy prices weighed on activity. The ‌S&P Global Canada Manufacturing Purchasing Managers' Index (PMI) fell to 51.5 last month from 53.0 in August.