TSX Today: What to Watch for in Stocks on Thursday, August 20

After a volatile session, the TSX could see support from strengthening oil prices at the open today, while escalating U.S.-Iran tensions and fresh U.S. economic data remain in focus.

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Key Points
  • Canadian stocks ended with a minor gain of 34 points at 36,402 yesterday as geopolitical developments and shifting U.S. interest rate expectations influenced market volatility.
  • NovaGold Resources, Endeavour Silver, First Majestic Silver, and Discovery Mining surged over 12% due to a rally in gold and silver prices, while Enerflex, MDA Space, 5N Plus, and Bank of Montreal fell by more than 4.4%.
  • TSX energy stocks may rise in early trading today due to a spike in oil prices driven by escalating U.S.-Iran tensions, as investors also watch U.S. manufacturing and jobless claims data.

Canadian stocks remained volatile for the fourth consecutive session on Wednesday as investors continued to assess geopolitical developments and shifting expectations for U.S. interest rates. Even as surging metals prices helped the S&P/TSX Composite Index open higher from its previous closing level, the benchmark ended the day with a minor gain of 34 points, or 0.1%, at 36,402.

Despite gains in some key market sectors like mining, real estate, and consumer staples, declines in financial, utility, and energy stocks weighed on the broader market and prevented the TSX index from holding on to most of its early gains.

TSX investors mainly digested the U.S. Federal Reserve’s July meeting minutes, which showed that most policymakers supported keeping interest rates unchanged, although several favored a 25-basis-point hike. The latest Federal Open Market Committee (FOMC) minutes also highlighted concerns that persistent inflation and Middle East-related energy pressures could require a tighter policy stance.

tsx today

Top TSX Composite movers and active stocks

A sharp rally in gold and silver prices drove mining stocks like NovaGold Resources, Endeavour Silver, First Majestic Silver, and Discovery Mining up by at least 12% each, making them the day’s top-performing TSX stocks.

Shares of Trekor Metals (TSX: TKO) also trended higher after the company provided an update on its Aley niobium project in British Columbia. Trekor said recent work improved niobium recoveries and concentrate grades while reducing reagent use.

Notably, Trekor has successfully produced marketable ferroniobium and is now scaling up pilot work while engaging with potential customers and processors. The company also appointed Steve Sparkowich to help advance the project’s technical development and commercial strategy.

In contrast, Enerflex, MDA Space, 5N Plus, and Bank of Montreal were the worst-performing TSX stocks for the day, with each falling by at least 4.4%.

Based on their daily trade volume, Manulife Financial, Canadian Natural Resources, Enbridge, Equinox Gold, and Telus were the five most active stocks on the Toronto Stock Exchange.

TSX today

West Texas Intermediate crude oil futures prices jumped to their highest level in August in early trading on Thursday, which could lift TSX energy stocks at the open today.

The rebound in oil came as U.S.-Iran tensions intensified after President Donald Trump announced plans for tougher economic measures against Tehran and threatened consequences for countries helping Iran evade restrictions. With the Strait of Hormuz still largely closed and U.S.-Iran peace talks stalled, geopolitical headlines could continue to drive volatility in oil prices and the TSX energy sector today.

On the economic releases front, Canadian investors may want to keep an eye on the latest manufacturing and jobless claims data from the U.S. this morning.

Market movers on the TSX today

Fool contributor Jitendra Parashar has positions in Bank Of Montreal, Canadian Natural Resources, Enbridge, and MDA Space. The Motley Fool recommends Canadian Natural Resources, Enbridge, Enerflex, MDA Space, and TELUS. The Motley Fool has a disclosure policy.

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