TSX Bounces Back on Mining Stocks Despite Rate Anxiety

Canada's main stock exchange, the TSX, rebounded yesterday, rising by 0.7% despite high bond yields and a cautious message from the Bank of Canada.

The materials sector led the way, gaining 2.6%, as gold and silver prices steadied and miners like Endeavour Silver, Kinross Gold, and Barrick Gold saw significant increases - 5.3%, 3.3%, and 2.9% respectively.

Although the Bank of Canada left interest rates unchanged at 2.25%, it highlighted rising inflation risks and potential new US tariffs that could add uncertainty to growth. As a result, traders increased their odds of another rate hike later this year to 75%, from 64% previously.

Analyst Neil Linsdell noted that it's a 'very high bar' for the Bank of Canada to make a move either way, given how quickly conditions can change. Meanwhile, Canada's 10-year government bond yield sat near 3.759%.