TSX Hits Two-Week Low as Banks Extend Selloff
The TSX today closed at a two-week low as Canadian bank stocks extended their selloff ahead of third-quarter earnings results due the week of August 25.
The S&P/TSX Composite closed at 36,365.42 on Thursday, down 36.37 points or 0.10%. The benchmark index edged lower as rising oil prices fueled inflation concerns, with bond yields climbing amid geopolitical tensions. Data as of August 20, 2026 close. Source: Trading Economics.
Canadian Bank Stocks Fall for Second Straight Day
Canada’s Big Six bank stocks declined for a second consecutive session as investors positioned ahead of Q3 earnings season. Royal Bank fell 1.2%, TD Bank dropped 1.4%, BMO declined 1.6%, CIBC slid 1.9%, and Scotiabank lost 1.5%.
Wednesday’s bank selloff saw some lenders drop as much as 4.4%, making this a notable pre-earnings retreat for the sector. Banks are expected to report third-quarter results the week of August 25, though exact dates for individual lenders remain unconfirmed. Despite the pullback, the Big Six remain core holdings in many Canadian dividend portfolios.
Gold Miners Rally as Defensive Play Emerges
Gold mining stocks rallied Thursday as investors rotated into defensive sectors. Franco-Nevada gained 2.8%, Barrick Mining advanced 2.4%, Agnico Eagle rose 1.8%, and Wheaton Precious Metals climbed 1.8% as gold firmed amid market uncertainty.
The energy sector also posted gains, with Canadian Natural Resources up 2.9% on rising oil prices.
Retail Stocks Slip Ahead of June Sales Data
Canadian retail stocks declined ahead of this morning’s Statistics Canada retail trade report for June 2026, scheduled for release at 8:30am ET today. Alimentation Couche-Tard fell 2.2%, Loblaw dropped 1.3%, and Dollarama slipped 1.4%.
Statistics Canada’s advance estimate suggested June retail sales rose 0.4%, though the agency noted this early figure will be revised when the final data is released. Source: Statistics Canada.
What Canadian Investors Should Watch
Three key events are on the horizon for Canadian investors:
First, Big Six bank earnings arrive the week of August 25. How Canadian bank stocks perform relative to expectations could set the tone for the broader financial sector through the fall.
Second, the Federal Reserve’s Jackson Hole symposium runs August 27–29, where central bank officials often provide insights into monetary policy direction. Any signals on interest rate trajectory could impact both Canadian bonds and equities.
Third, the Bank of Canada’s next rate decision is scheduled for September 2. Markets will be watching for any shift in the central bank’s stance on inflation and economic growth.
The Bottom Line
Thursday’s modest decline masks meaningful sector divergence on the TSX. While bank stocks retreated ahead of earnings, gold miners and energy names found support. The next few weeks will clarify whether the financials selloff represents pre-earnings caution or a deeper concern about credit quality and lending margins.
Disclaimer: The content on bestcanadianstocks.ca is for informational and entertainment purposes only and does not constitute financial advice. Past performance is not indicative of future results. Always consult a qualified financial advisor before making investment decisions. Market data as of the August 20, 2026 close.
