TSX Poised for Mixed Start Amid Year-End Caution and Rising Yields

The S&P/TSX Composite Index is anticipated to open on a mixed note Monday, as traders adopt a wait-and-see approach heading into the final trading sessions of 2024. This cautious sentiment follows a weak Friday close where the benchmark index dropped 50.42 points, or 0.2%, to finish at 24,796.40. The decline was largely driven by a sell-off in technology stocks, triggered by U.S. 10-Year Treasury yields climbing toward an eight-month peak. This trend has created a headwinds for growth-oriented assets across North American markets. Domestic economic indicators also suggest a cooling trend. The Canadian Federation of Independent Business (CFIB) reported that its Business Barometer—a measure of 12-month forward expectations for business performance—slipped to 56.4 in December, down from a previously revised 59.8, which had been the highest level since mid-2022. Internationally, markets are similarly fragmented. Asian indices ended mixed, hampered by political volatility in Seoul and weak factory output data. In Europe, sentiment is weighed down by comments from ECB Governing Council member Robert Holzmann, who suggested that rising inflation could delay upcoming interest rate cuts. Commodity markets provide a slight offset to the equity weakness. West Texas Intermediate (WTI) crude oil futures edged up 0.5% to $70.95 per barrel, while gold and silver showed marginal gains, with gold futures trading at $2,632.70 an ounce.