Toronto Stocks Bounce Amid Oil Slump and Economic Data

Toronto's stock market inched higher despite oil prices slipping, thanks to fresh data on Canada's economy and interest rates. The S&P/TSX Composite rose 0.3%, with financials leading the way up by 1.1%. Tech stocks, however, fell by 1.1%.

The decline in oil prices weighed on Canada's energy-heavy market. WTI crude dropped 2.3% to $92.41 a barrel, while Brent slid 2.1% to $104.32. Gold futures, on the other hand, rose 0.7% to $4,327.10 an ounce.

The Canadian government's budget and wholesale sales data provided some insight into the country's economic growth. The federal deficit was smaller than expected at CA$5.1 billion from April through July, with revenue increasing to CA$175.5 billion. However, Statistics Canada reported a 1.5% month-over-month decline in wholesale sales excluding oil and grain in August.

The impact of the deficit on interest rates is still being felt. Ottawa's smaller early-year shortfall means it will issue fewer Government of Canada bonds, which can take some upward pressure off yields. This matters because domestic yields ripple through rate-sensitive TSX sectors, including financials.