Thursday, August 20, 2026
Wall Street snapped a three-day losing streak and the TSX edged to a fresh closing high on Wednesday as a surprise move from the U.S. Treasury calmed the bond market — but Canada's real test comes tomorrow, when the pause on 50% U.S. tariffs is set to expire at end of day Friday. Gold pushed to a two-month high, the loonie jumped to its best level in weeks, and Walmart's earnings this morning gave the first hard read on how tariff-era prices are landing with shoppers. Here's everything moving Canadian money today.
🇨🇦 TSX: Gold Miners Surge, Big Banks Slide
The S&P/TSX Composite closed at 36,401.79, up 33.86 points (+0.09%) on Wednesday — a modest gain that masked a sharp split under the hood. Gold miners exploded higher as bullion hit two-month highs: Agnico Eagle surged 10.5%, Wheaton Precious Metals jumped 10.4% and Barrick Gold added 6.7%. On the other side, the Big Five banks were hit hard as rising oil prices stoked fresh inflation worries — RBC fell 3.1%, TD Bank lost 3.5%, BMO dropped 4.4%, CIBC slid 3.7% and Scotiabank fell 3.3%. Energy stocks lagged despite higher crude, with Canadian Natural Resources down 0.7% and Suncor off 1%, while Enbridge dropped 2.7%.
| Index | Close | Change |
| S&P/TSX Composite | 36,401.79 | +33.86 (+0.09%) |
🇺🇸 Wall Street: Yields Ease, Stocks Bounce
U.S. stocks snapped a three-day slide on Wednesday after the Treasury Department said it would more than double its buybacks of long-dated bonds, easing pressure from a 30-year yield that had hit its highest level since 2007 earlier in the week. Strong results from Estée Lauder and Target added support.
| Index | Close | Change |
| Dow Jones | 53,463.05 | +119.65 (+0.22%) |
| S&P 500 | 7,707.98 | +16.22 (+0.21%) |
| Nasdaq Composite | 26,331.09 | +41.38 (+0.16%) |
| Russell 2000 | 3,032.94 | +15.05 (+0.50%) |
Breaking this morning: Walmart posted Q2 revenue of $187.9 billion (+5.9% year-over-year), edging past the $186.8 billion Wall Street expected, and raised its full-year adjusted profit outlook to $2.80–$2.87 a share. But U.S. comparable sales excluding fuel grew just 2.6% — the slowest pace in more than six years — with falling GLP-1 drug prices cited as a specific drag. It's a mixed bellwether read heading into Canada's own back-to-school and fall shopping season.
🌍 Europe & Asia
Europe (Wednesday close): London's FTSE 100 was the only major bourse with a clear gain, up 0.19% to 10,748.02. Germany's DAX fell 0.67% and France's CAC 40 finished nearly flat as European banks tumbled — BNP Paribas and ING each fell 2.4% — even as the Treasury news pulled global yields lower. The Euro Stoxx 50 dropped 0.2% to 6,454.
Europe (this morning): Stocks opened broadly lower Thursday as a jump in German producer prices offset the overnight rally, with London dipping in early trade amid fresh rhetoric from President Trump against Iran.
Asia (overnight): Asian markets rebounded sharply, tracking the U.S. bond-buyback relief. Japan's Nikkei 225 jumped 1.21% (+791 points) to 66,118, snapping a two-session slide, while Hong Kong's Hang Seng climbed 1.24% to 25,810. South Korean tech names led broad regional gains.
🛢️ Commodities & the Loonie
| Asset | Level | Move |
| Brent Crude | ~US$93.01/bbl | +1.52% |
| WTI Crude | ~US$84–85/bbl | 4-week high |
| Gold | ~US$4,490–4,510/oz | 2-month high |
| Canadian Dollar | ~72.4¢ US (1.3814 USD/CAD) | Multi-week high |
Oil extended its climb for a fourth straight session as tensions over the Strait of Hormuz escalated further — the UAE announced it was cutting economic ties with Iran over an alleged missile strike on its territory, adding a fresh risk premium. Gold's more-than-3% surge came courtesy of the Treasury's bond buyback news, which sent yields tumbling and made non-interest-bearing bullion more attractive; it's since eased slightly off Wednesday's peak but remains near two-month highs. The loonie was the standout, jumping to its best level in weeks as the U.S. dollar index slid to a two-month low and elevated oil prices lent extra support.
💰 What It Means for You
The stronger loonie is good news if you're booking a fall U.S. trip or shopping cross-border — every cent the dollar climbs stretches your spending power a little further. But it cuts the other way for exporters and anyone holding unhedged U.S.-dollar investments, which are now worth slightly less in Canadian terms. If you own gold or gold-mining stocks in a TFSA or RRSP, Wednesday's rally was a good day; if you hold the Big Five banks, it was a rough one, and it's a reminder that "safe" blue-chip financials aren't immune to swings tied to oil and inflation expectations. The real number to watch is tomorrow's tariff deadline — if the 25% steel-and-aluminum framework reported by Bloomberg holds, it would mark a real de-escalation from the 50% threat, but nothing is final until the documents are signed.
📅 What to Watch
- Friday, Aug. 21: The paused 50% U.S. tariff on roughly $20 billion of Canadian goods is set to expire at end of day. Ottawa and Washington say a deal is close — reportedly including 25% steel and aluminum tariffs and expanded U.S. agricultural access — but it isn't signed yet.
- This week: Big-box earnings wrap up with Walmart's report this morning, following Home Depot's beat on Tuesday and Target/Lowe's on Wednesday — together the clearest read yet on how tariff-driven costs are hitting Canadian and U.S. shoppers alike.
- Tuesday, Sept. 2: The Bank of Canada's next rate decision, following its July hold at 2.25%.
- Ongoing: Strait of Hormuz tensions and the expired U.S.-Iran ceasefire remain the wildcard for oil prices — and, by extension, gas prices and headline inflation at home.
Market data reflects Wednesday, August 19 closing prices unless otherwise noted, with commodity, currency and Asia-Pacific figures updated through Thursday morning, August 20. This article is for informational purposes only and is not financial advice
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