Canada Stocks: TSX eases from record high as Allied Gold slumps; Fed decision in focus

Allied Gold

29/07/2026 15:37

July 29 (Reuters) - Canada's main stock index retreated on Wednesday from the last session's record high, dragged by losses in Allied Gold AAUC.TO after its C$5.5 billion ($3.90 billion) sale was scrapped, while investors remained cautious ahead of the Federal Reserve's interest rate decision.
     The S&P/TSX Composite index .GSPTSE dipped 0.6% to 35,544.99 points after rising for three straight sessions.
Shares of Allied Gold were down 17.6% and headed for their biggest one-day slump, after the Canadian miner and Zijin Gold 2259.HK scrapped their deal and the Chinese company  instead bought a 9.2% stake in Allied Gold for about $295 million.
Meanwhile, Cenovus Energy CVE.TO jumped 5.2% as the oil firm raised its 2026 production outlook, after posting a more than threefold jump in second-quarter profit.
Energy stocks .SPTTEN firmed about 2.7% as oil prices surged nearly 7% after major airstrikes resumed in the Middle East, dashing hopes for an imminent end to the U.S.-Israeli war with Iran. O/R
Focus will turn to the Federal Reserve's interest rate decision, due later in the day, where policymakers are largely expected to keep rates unchanged although rate-hike bets have increased in recent days. 
Traders see a 95% chance of a U.S. interest rate hike by September, according to LSEG data.
"Our expectation is that today's (July 29) decision should primarily influence the pace and peak of hike risk, with points further out likely somewhat stickier," Goldman Sachs economists said in a note.
Canada's benchmark index hit a record high in the previous session, with technology shares .SPTTTK logging their best two-day rally since 2002.
On the trade front, U.S. President Donald Trump said on Tuesday that he does not care about updating the North American trade agreement, even as Canada disclosed plans to send senior trade officials to Washington for more talks.

 (Reporting by Medha Singh and Sudeshna Ghoshal in Bengaluru ; Editing by Diti Pujara)
 ((medha.singh@thomsonreuters.com))