TSX Today: What to Watch for in Stocks on Thursday, October 1

After falling for a third straight session, weaker copper, Canada-U.S. trade tensions, and uncertainty surrounding the U.S.-Iran conflict may limit TSX recovery at the open today.

Key Points
  • The TSX Composite dropped 224 points on Wednesday as weaker metals prices and ongoing Canada-U.S. trade tensions overshadowed positive U.S. PCE inflation data.
  • First Quantum Minerals fell over 15% due to uncertainty about its Cobre Panamá mine's future, while Russel Metals and BlackBerry rose by over 3%.
  • Sharp copper price drops alongside rising crude oil prices suggest mixed signals for the TSX opening today, with U.S. jobless claims and manufacturing PMI data, as well as Canada-U.S. trade and U.S.-Iran relations in focus.

Despite cooler-than-expected U.S. personal consumption expenditure (PCE) inflation data, Canadian stocks continued to fall for the third consecutive session on Wednesday as weaker metals prices and continued Canada-U.S. trade tensions kept investors on edge. The S&P/TSX Composite Index plunged by 224 points, or 0.6%, to settle at 35,236, extending the benchmark’s weekly decline to 1.6%.

Even as some shares from the energy and technology sectors saw renewed buying, steep losses in healthcare, mining, and financial stocks kept the broader TSX benchmark under pressure throughout the session.

tsx today

Top TSX Composite movers and active stocks

First Quantum Minerals (TSX: FM) tanked by more than 15% to $38.23 per share, making it the worst-performing TSX stock. The sharp selloff followed an update on the future of its Cobre Panamá mine. A Panamanian ministerial commission recommended opening formal negotiations with the company to explore a new agreement that could resolve pending international arbitrations and establish terms for the project to move toward an orderly closure, with no possibility of an extension.

Now, First Quantum plans to engage constructively and is awaiting guidance from the Panamanian government on the next steps. The prospect of an eventual closure rather than a long-term restart heightened investor concerns about Cobre Panamá’s future and pressured FM stock.

Curaleaf Holdings, Franco-Nevada, and Stella-Jones also dived by 3.2% each, making them some of the day’s worst-performing TSX stocks.

On the brighter side, Russel Metals, BlackBerry, Aecon, and Telus climbed by more than 3% each, making them the session’s top-performing TSX stocks.

Based on their daily trade volume, Telus, First Quantum Minerals, Canadian Natural Resources, Brookfield, and Ivanhoe Mines were the five most active stocks on the Toronto Stock Exchange.

TSX today

Copper prices fell sharply in early Thursday trading, while crude oil prices extended their gains, creating mixed signals for the commodity-heavy TSX at the open today. While stronger energy prices could support oil and gas stocks, continued weakness in copper may weigh on Canadian miners and limit broader upside.

Canadian investors will also monitor weekly U.S. jobless claims and the ISM manufacturing purchasing managers’ index (PMI) for fresh clues about the strength of the American economy and the interest-rate outlook.

At the same time, the Canada-U.S. trade dispute remains a key source of uncertainty after U.S. President Donald Trump intensified his criticism of Canada following the implementation of new import restrictions on selected Canadian products.

Meanwhile, developments in the U.S.-Iran conflict could add another layer of volatility after Trump reiterated that Washington could either reach a deal with Iran or consider further military action. Any signs of diplomatic progress could ease pressure on global energy markets, while renewed escalation could quickly push crude prices and inflation expectations higher, potentially adding volatility to TSX energy, financial, and other rate-sensitive stocks.

Market movers on the TSX today

Fool contributor Jitendra Parashar has positions in BlackBerry, Brookfield Corporation, and Canadian Natural Resources. The Motley Fool has positions in and recommends Brookfield Corporation. The Motley Fool recommends Canadian Natural Resources, Russel Metals, Stella-Jones, and TELUS. The Motley Fool has a disclosure policy.

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