Canada Stocks: TSX posts steepest decline in four months as bond yields climb

Valterra Platinum

07/10/2026 21:39

Updates at market close
By Fergal Smith
TORONTO, Oct 7 (Reuters) - Canada's benchmark stock fell the most in four months on Wednesday as investors weighed elevated bond yields and trade uncertainty, with financial and metal mining shares leading declines.
The Toronto Stock Exchange's S&P/TSX Composite Index .GSPTSE ended down 607.65 points, or 1.7%, at 35,041.86, its steepest decline since June 5 and the lowest closing level in two and a half months.
The US 10-year benchmark, a global benchmark for long-term borrowing costs, touched a fresh 24-year high before clawing back some of their increase on a strong auction.
"When yields go up, you get headwinds with materials," said Michael Dehal, a senior portfolio manager at Dehal Investment Partners at Raymond James.
The materials sector .GSPTTMT, which includes metal mining shares, declined 2.9% as gold XAU= dropped to a two-month low. A stronger US dollar, along with elevated US Treasury yields, reduced the appeal of the non-yielding metal.
Anglo American's AAL.L proposed $54 billion merger with Canada's Teck Resources TECKb.TO and the sale of its Brazilian nickel business have become test cases for navigating geopolitical complexities as they await antitrust approval, CEO Duncan Wanblad said. Shares of Teck lost 2.2%.
US President Donald Trump said Canada has been difficult to deal with as his administration seeks to reach a new trade agreement with Ottawa.
"As this tariff uncertainty continues, you're going to see more and more downward pressure materialize for consumers and businesses and that's going to weigh down on financials," Dehal said.
Heavily weighted financials .SPTTFS were down 2.3% as major bank stocks posted declines. It included a 3.3% drop for the shares of Toronto-Dominion Bank TD.TO.
Industrials .GSPTTIN lost 1.65% and energy .SPTTEN ended 0.75% lower.
US crude oil futures CLc1 settled down 1.3% at $88.28 a barrel after the International Energy Agency agreed to speed up a release of oil stocks and prioritize diesel in a bid to curb record-high fuel prices as the Iran war squeezes global supplies.

 (Reporting by Fergal Smith in Toronto and Avinash P and Anand Gopal in Bengaluru; Editing by Tasim Zahid, Sahal Muhammed and David Gregorio)
 ((fergal.smith@thomsonreuters.com; +1 647 480 7446))