TSX Today: What to Watch for in Stocks on Thursday, June 5

Strong overnight gains in metals prices could drive the resource-heavy TSX index higher at the open today as the focus remains on global trade tensions.

Canadian equities turned slightly negative on Wednesday after a two-day streak of record closes as the Bank of Canada held its policy rate steady at 2.75%, citing persistent global uncertainty, especially due to unpredictable U.S. trade policies. The S&P/TSX Composite Index gave up 98 points, or 0.4%, to close at 26,329 — trimming its week-to-date gains to 0.6%.

Even as firm metals prices continued to push mining stocks higher, sharp declines in many other key sectors, such as consumer discretionary, utilities, and energy, dragged the TSX lower, underscoring investors’ sensitivity to policy signals and geopolitical developments.

tsx today

Top TSX Composite movers and active stocks

Algonquin Power & Utilities, Cenovus Energy, Vermilion Energy, and Brookfield Renewable Partners dived by at least 3.3% each, making them the worst-performing TSX stocks for the day.

In contrast, NovaGold Resources (TSX: NG) was the day’s top-performing TSX stock, with the shares zooming up by 24% to $6.41 apiece. These gains in NG stock followed the company’s announcement that it completed a US$1 billion deal with Paulson Advisers to acquire Barrick Mining’s 50% stake in the Donlin Gold project.

With this deal, NovaGold now holds a 60% interest in the high-potential Alaskan gold project, with Paulson owning the remaining 40%. The move could be seen as transformative, giving NovaGold greater control and visibility over one of the world’s largest undeveloped gold deposits. On a year-to-date basis, NG stock is now up 33%.

Ero Copper, Lundin Mining, and Aya Gold & Silver were also among the session’s top gainers on the Toronto Stock Exchange, with each climbing by at least 4%.

Based on their daily trade volume, Canadian Natural Resources, Suncor Energy, Cenovus Energy, Manulife Financial, and Whitecap Resources were the five most active stocks on the exchange.

TSX today

Metals prices, especially silver and copper, jumped sharply in early trading on Thursday, which could extend gains in TSX mining stocks at the open today.

Besides the domestic Purchasing Managers Index (PMI), Canadian investors also may want to keep an eye on the weekly U.S. jobless claims data this morning. Overall, the market may remain volatile through the session as investors weigh commodity tailwinds against lingering concerns around rate policy and trade tensions.

On the corporate events side, the TSX-listed Enghouse Systems and Saputo will announce their quarterly results today after the market closing bell.

Market movers on the TSX today

Fool contributor Jitendra Parashar has positions in Canadian Natural Resources. The Motley Fool has positions in and recommends Enghouse Systems. The Motley Fool recommends Brookfield Renewable Partners, Canadian Natural Resources, Vermilion Energy, and Whitecap Resources. The Motley Fool has a disclosure policy.

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