The TSX Composite's two-week path shows a market reversing itself almost as quickly as it moved. A geopolitical escalation earlier in the week had triggered a synchronized selloff across equities, oil, and gold, but by Thursday afternoon most of those declines had already unwound. Notably, the Government of Canada 10-year yield did not follow the same pattern, holding steady while stocks and commodities round-tripped. That divergence suggests bond investors read the underlying risk differently than equity and commodity markets did.
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A broad selloff hit equities, oil, and gold together on Wednesday, triggered by an escalation in trade tensions that rattled risk sentiment across markets simultaneously.
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Brent was the only one of the three to finish above its starting level, while the index and gold both fell.
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The Bank of Canada held its policy rate at 2.25% for a seventh straight time, yet Canadian yields rose as United States yields surged.
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The index fell for the month even though Brent crude gained and the Strait of Hormuz stayed shut, because rising United States bond yields outweighed oil and gold.
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Canadian yields drifted higher through August even though the Bank of Canada held its policy rate at 2.25% and had no decision to make during the month.
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Gold rallied and gold miner shares carried the TSX higher, while Brent ended the month close to where it began.
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