TSX Edges Up as Canada Records Rare Current-Account Surplus

Canada's benchmark stock index, the TSX Composite, edged up by 0.1% on Thursday as oil prices rose and fresh data showed a rare current-account surplus in the country.

The economic data from Statistics Canada revealed that the seasonally adjusted current account moved to a C$8.8 billion surplus in the second quarter, the first since Q2 2022 and the largest since Q4 2005, after exports improved the goods trade balance.

A stronger loonie (Canadian dollar) resulted from this surplus, with USD/CAD around 1.3854 as the US dollar fell by 0.2%.

This currency backdrop poses a dilemma for the Bank of Canada ahead of next Wednesday's rate decision, with policymakers expected to hold the policy rate at 2.25%, according to Nomura.