CANADA STOCKS-TSX extends slide as oil weakness drags energy shares lower

By Reuters News

By Darshan Kumar R

Sept 25 (Reuters) - Canada's main stock index was set to fall for a third straight session on Friday as high bond yields and lower oil prices weighed on sentiment.

The Toronto Stock Exchange's S&P/TSX Composite Index .GSPTSE was down 0.12% at 35,663.77 points at 10.24 a.m. ET (1424 GMT).

  • The energy sector .SPTTEN fell 1.5%, making it the biggest drag on the index

  • Brent crude eased more than 1% on Friday as markets weighed the possibility of a truce between the US and Iran against concerns that increasing attacks against Saudi Arabia by Houthi fighters could disrupt supply from the key Middle Eastern producer O/R

  • Worries about the global economy have pushed bond yields to multi-year highs, with the yield on the US benchmark 10-year Treasury note above 5%.

  • The yield on its Canadian equivalent hovered around 3.95%

  • Mining stocks .GSPTTMT will be in focus as precious metal prices attempt a rebound GOL/

  • "Gold's resilience despite higher bond yields reflects growing demand for commodities as an inflation hedge, with central bank buying, particularly from China, supporting prices," said Matt Manara, partner and portfolio manager at Aventine Investment Management.

  • Financials .SPTTFS rose 0.8% and the consumer discretionary sector .GSPTTCD gained 0.7%, limiting losses on the TSX

  • Markets are pricing in a 65% chance of a 25-basis-point or larger Bank of Canada rate hike in October, according to LSEG data

  • On the corporate front, National Bank of Canada NA.TO plans to buy back 10 million shares for up to C$2.25 billion, starting October 9, 2026 and ending October 8, 2027

  • Air Canada AC.TO said it plans to buy back 27.6 million shares for C$800 million at C$29 apiece

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