Canada\u2019s main stock index is expected to rise to another all-time high next year as trade uncertainty potentially eases and resource shares benefit from booming spending on artificial intelligence, a Reuters poll found.<\/p>\n
The median prediction of 20 equity strategists and portfolio managers in the Nov. 13 to 25 poll was for the S&P\/TSX Composite Index to rise nearly five per cent to 32,125 by the end of 2026, from 30,604 on Monday.<\/p>\n
That would eclipse the record closing high of 30,827.58 on November 12 and the 30,000-mark expected in an August poll. By mid-2027, the index was forecast to reach 33,925, a gain of 10.9 per cent.<\/p>\n
\u201cWe are heading into 2026 with a more optimistic view than we did 2025,\u201d said Philip Petursson, chief investment strategist at IG Wealth Management.<\/p>\n
\u201cThe environment has changed for the better. While tariffs still exist for now, there is less uncertainty around the levels of tariffs investors and companies should expect and plan for.\u201d<\/p>\n
Lower interest rates<\/p>\n
Canada wants a deal to lower U.S. tariffs on steel, aluminum and autos but most other goods are exempt from duties under the U.S.-Mexico-Canada Agreement.<\/p>\n
\u201cCentral banks continue to shift from restrictive policy to accommodation, with continued rate cuts expected from both the Bank of Canada and the U.S. Federal Reserve,\u201d Petursson said. \u201cThis boost in liquidity is already supporting stock values, particularly in long-duration sectors like technology.\u201d<\/p>\n
The Bank of Canada has lowered its benchmark interest rate to a more than three-year low of 2.25 per cent, while fiscal policy could be another tailwind.<\/p>\n
Canadian Prime Minister Mark Carney committed earlier this month to spend billions of dollars on measures to raise productivity and is aiming to speed up natural resource project construction.<\/p>\n
\u201cCanadian energy and Canadian minerals will continue to be in high demand to fuel the needs of AI-related technologies for years to come,\u201d said Matt Skipp, president of SW8 Asset Management.<\/p>\n
The energy and materials sectors combined account for 32 per cent of the TSX\u2019s market capitalization.<\/p>\n
Still, 11 of 15 analysts that answered a separate question said a correction was likely or very likely over the coming three months. The TSX has advanced 23.8 per cent since the start of the year, putting it on track for its biggest annual increase since 2009.<\/p>\n
\u201cThis year\u2019s strong gains will be difficult to replicate as valuations have already re-rated higher, and the tailwind from surging gold prices may be largely exhausted,\u201d said Angelo Kourkafas, senior global investment strategist at Edward Jones. \u201cThis suggests slower returns and potentially higher volatility in 2026.\u201d<\/p>\n
(Reporting by Fergal Smith; Additional polling by Aman Kumar Soni and Jaiganesh Mahesh; Editing by Alex Richardson)<\/p>\n","protected":false},"excerpt":{"rendered":"Canada\u2019s main stock index is expected to rise to another all-time high next year as trade uncertainty potentially…\n","protected":false},"author":2,"featured_media":308142,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[11],"tags":[712,45,49,48,46],"class_list":{"0":"post-308141","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-apple-news","9":"tag-business","10":"tag-ca","11":"tag-canada","12":"tag-economy"},"_links":{"self":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/308141","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/comments?post=308141"}],"version-history":[{"count":0,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/posts\/308141\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media\/308142"}],"wp:attachment":[{"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/media?parent=308141"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/categories?post=308141"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.newsbeep.com\/ca\/wp-json\/wp\/v2\/tags?post=308141"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}