TORONTO – Canada’s main stock index gained ground on Wednesday as investors sifted through earnings from the country’s largest leaders, while U.S. markets also rose.
Royal Bank of Canada shares gained 1.12 per cent on the day after handily beating analyst expectations with fourth quarter results that showed rising profits across most divisions. National Bank of Canada lost 1.59 per cent after it reported higher fourth quarter profit and announced Tuesday that it was buying Laurentian Bank’s retail and small business segments.
“RBC and National Bank reported Q4 year-end results, and similar to Bank of Nova Scotia yesterday, RBC and National beat consensus on strong capital markets and wealth management performance,” said Ian Chong, portfolio manager for First Avenue Investment Counsel Inc.
He added that National Bank isn’t trading as well as its peers due to provisions for credit losses that came in higher than expected.
Scotiabank reported a rise in profits that beat analyst expectations on Tuesday. Bank of Montreal, CIBC and Toronto-Dominion Bank are expected to report on Thursday. Chong said he expects the theme of strength in capital markets and wealth management to continue.
The S&P/TSX composite index was up 111.26 points at 31,160.54.
In New York, the Dow Jones industrial average was up 408.44 points at 47,882.90. The S&P 500 index was up 20.35 points at 6,849.72, while the Nasdaq composite was up 40.42 points at 23,454.09.
Meanwhile, U.S. stocks rose near their record levels on Wednesday as mixed data on the economy kept alive hopes that a cut to interest rates is coming soon.
Chong noted that the overall gain in U.S. markets came after “choppy” trading in the morning.
Stocks broadly got a lift from easing Treasury yields in the bond market. They fell after a report suggested U.S. employers outside of the government may have cut more jobs in November than they added.
While the surprisingly weak report from ADP may be discouraging for people looking for jobs, it also bolstered expectations that the U.S. Federal Reserve will cut its main interest rate next week. If the Fed does, that would be the third such cut this year in hopes of helping the slowing job market.
“The 35,000 less jobs versus the expectation of 10,000 new jobs during the month clearly is very supportive of a potential rate cut next week on Dec. 10 with the weakening employment situation,” Chong said.
“This is corroborated by the Fed fund futures, which are pricing in a 95 per cent probability of a 25 basis point rate cut.”
Investors love lower interest rates because they boost prices for investments and can charge up the economy.
The Canadian dollar traded for 71.69 cents US compared with 71.50 cents US on Tuesday.
The January crude oil contract was up 31 cents US at US$58.95 per barrel. The February gold contract was up US$11.70 at US$4,232.50 an ounce.
This report by The Canadian Press was first published Dec. 3, 2025.
— With files from The Associated Press.
Companies in this story: (TSX:GSPTSE, TSX:CADUSD)
