Canada Stock Market Today: TSX Slips at Midday as Financials Weigh, While Cannabis and Commodities Stay in Focus (Dec. 17, 2025)

Canada’s stock market is struggling to hold early momentum on Wednesday as the heavyweight financial sector drags on the Toronto Stock Exchange, even while commodity-linked and cannabis stocks remain in the spotlight. By late morning, the S&P/TSX Composite Index had moved into negative territory after earlier edging higher on a rebound in oil and a fresh surge in precious metals. ^[1]

The midday picture is being shaped by three dominant forces: (1) renewed caution in global equities as U.S. tech and AI names pressure Wall Street, (2) sharp moves in energy and metals prices after U.S. President Donald Trump ordered a blockade on sanctioned Venezuelan oil tankers, and (3) a powerful cannabis rally tied to expectations that the U.S. administration may move to ease federal restrictions. ^[2]

TSX at a Glance Around Midday

As of late-morning trading (around 12:45 p.m. ET), Canada’s benchmark index was down 49.90 points at 31,214.03, with losses “weighed down by” the financial sector, according to The Canadian Press. ^[3]

Key reference levels from late morning:

S&P/TSX Composite: 31,214.03 (down 49.90 points) ^[4]
Canadian dollar: 72.57 U.S. cents (down from 72.74 the prior day) ^[5]
February crude contract: up US$1.02 at US$56.15 per barrel ^[6]
February gold contract: up US$28.40 at US$4,360.70 an ounce ^[7]

From Early Lift to Late-Morning Dip: What Changed?

Earlier in the session, Canada’s main equity benchmark was slightly higher, supported by rebounds in energy and materials and a continued jump in cannabis names. Reuters reported the TSX rose 0.14% to 31,309.56 by 10:21 a.m. ET, putting the index on track to snap a three-day losing streak. ^[8]

By late morning, however, the tone shifted as financials turned into a drag and investors weighed global risk appetite against a fast-moving macro backdrop. ^[9]

This “push-pull” is typical of a market where commodity-linked sectors can lift the tape, but banks and insurers—because of their sheer weighting—can still determine the direction of the entire index.

Financials Under Pressure: Why Canada’s Heaviest Sector Matters Most

The Canadian market’s financial sector isn’t just another group—it’s the TSX’s engine room. So when financials soften, it’s difficult for the broader index to rally meaningfully, even if energy and miners are strong.

Today’s financial-sector caution also arrives against a sensitive news backdrop for Canadian banking and compliance. Reuters reported that global financial crime auditors—connected to the Financial Action Task Force (FATF) review process—visited Canada and interviewed financial institutions and government agencies in November, drawing extra attention after TD’s record U.S. money-laundering fine and broader scrutiny of enforcement effectiveness. The FATF review outcome is expected in June 2026, and sources described heightened concern in the financial sector about reputational risk. ^[10]

That doesn’t necessarily translate into immediate earnings impact across the sector, but it can influence near-term sentiment, especially in a market already searching for “fresh catalysts” into year-end. ^[11]

Cannabis Stocks Ignite Again on U.S. Policy Expectations

Cannabis is one of the clearest “story stocks” themes driving headlines today—both in Canada and across North American markets.

Reuters highlighted that cannabis stocks extended their rally as investors reacted to reporting that Trump is expected to sign an executive order tied to reclassifying cannabis to ease federal restrictions. In Canada-listed names, Reuters pointed to:

Curaleaf up 9.8%, hitting its highest level since May 2024 (per Reuters’ market snapshot) ^[12]
Canopy Growth up 12.6% ^[13]
Aurora Cannabis up 6.7% ^[14]

MarketWatch added context on why rescheduling matters: moving cannabis to a less restrictive category can ease certain federal constraints, potentially expand research and institutional participation, and—crucially for operators—could reduce tax burdens tied to the U.S. tax code’s restrictions on cannabis businesses. ^[15]

For TSX investors, this is a high-volatility corner of the market where headlines can overwhelm fundamentals intraday. But it’s also an area where Canada has an outsized presence—meaning sudden moves can noticeably influence market tone, even if the group is not the TSX’s largest weight.

Commodity Tailwinds: Oil Jumps on Venezuela Blockade, Metals Catch Fire

Oil: Geopolitics injects a new risk premium

Oil is rebounding sharply today after Trump ordered a “complete blockade” of sanctioned oil tankers entering and leaving Venezuela, raising supply uncertainty and geopolitical tension. Reuters reported oil prices rose more than 1% on the day, with Brent near $60 and WTI around the mid-$50s during the session. ^[16]

That matters for Canada because the TSX has meaningful exposure to energy producers, pipelines, and services firms. Reuters explicitly noted that energy stocks rebounded as oil rose nearly 2% in response to the blockade order. ^[17]

Barron’s echoed that the blockade headline was a key trigger for the day’s crude bounce, while also noting that longer-term sustainability may depend on whether demand strengthens or supply disruption persists. ^[18]

Precious metals: Silver hits records, gold climbs again

Materials and gold-linked shares are also getting support as silver prices surge and gold climbs on shifting rate expectations. Reuters reported silver surged past $65 an ounce to record highs, helping push the TSX materials and gold subindexes higher earlier in the session. ^[19]

Broader global markets coverage from Reuters also flagged silver above $65 and gold higher as investors navigated oil-driven geopolitics and assessed U.S. economic signals. ^[20]

Corporate News Moving Canadian Names: Bird Construction and TransAlta

Even on a macro-driven day, stock-specific headlines still matter—especially when they involve contracts, project awards, and regulatory decisions.

Bird Construction: Reuters noted shares of Bird Construction rose after the company was awarded projects worth $1.2 billion, a catalyst that can attract momentum buyers even during a choppy index session. ^[21]

TransAlta: Separately, The Canadian Press reported that the U.S. Department of Energy ordered TransAlta to keep a coal-fired plant in Washington State online three months longer than planned, as the company evaluates the order and works with governments. The plant had been expected to wind down coal generation by year-end before conversion plans; the update adds a new wrinkle to the company’s operational timeline and power-market narrative. ^[22]

The Macro Backdrop: Global Risk Mood, Rates, and Why the TSX Cares

Wall Street’s AI anxiety is still rippling outward

Canadian equities often track broader North American risk sentiment—particularly when markets are “risk-off” due to concerns around technology spending cycles, debt loads, and valuation.

On Wednesday, the Associated Press highlighted that U.S. markets were again pressured by declines in AI-related stocks, with worries about valuations and the payoff timeline of massive AI investment. ^[23]
Those dynamics can spill into Canada through:

Canada’s own tech winners (and their supply chains),
risk appetite for cyclical vs. defensive exposure,
and cross-border portfolio flows.

Rates remain the invisible hand

Investors are still calibrating how quickly North American central banks may cut further in 2026. Reuters’ global markets wrap noted that traders are watching upcoming inflation data and central-bank decisions, while also tracking labor-market signals that can change the policy outlook. ^[24]

In the Canada-specific market context, Reuters also pointed out that the Bank of Canada held its key policy rate at 2.25% last week, and that investors are scanning for new catalysts into the end of the year. ^[25]

Fresh Canada Data Today: Foreign Buying of Canadian Securities Surges

A notable Canada-specific macro release on Dec. 17 comes from Statistics Canada: foreign investors added $46.6 billionof Canadian securities in October 2025, the highest such investment since March 2022, producing a net inflow of $58.2 billion into the Canadian economy that month. ^[26]

Why this matters for “Canada stock market today” coverage:

Strong foreign inflows can support demand for Canadian assets broadly (equities and bonds).
StatCan notes foreign investors bought $12.6 billion in Canadian equity securities in October—led by energy/mining and finance/insurance—highlighting continued global interest in Canada’s two market-defining sectors. ^[27]

This doesn’t dictate intraday TSX direction, but it reinforces a structural tailwind: global allocators still appear willing to buy Canadian exposure, particularly in the TSX’s core sectors.

Outlook and Forecast Watch: What Traders Are Watching Next

Here’s what’s likely to shape the TSX into the afternoon and the rest of the week:

Financials vs. commodities tug-of-war
If banks remain soft, the TSX may struggle to rally even if oil and gold keep climbing. ^[28]
Venezuela blockade-driven oil volatility
Oil’s rebound is headline-sensitive right now. Continued escalation could support Canadian energy shares, while any de-escalation could quickly unwind the move. ^[29]
Cannabis policy headlines (high beta, fast reversals)
This is a momentum-driven theme with large daily swings. Traders are watching for concrete details (timing, scope, agency steps) rather than just speculation. ^[30]
Economic catalysts: Canada retail sales and global inflation prints
Reuters noted investors are looking for fresh drivers, including Canada’s October retail sales data due Friday. ^[31]
Globally, markets are also awaiting inflation data and central-bank signals that can influence bond yields, the Canadian dollar, and equity valuations. ^[32]

Big Picture: 2025 Has Been a Breakout Year—But the Finish Is Getting Choppy

Even with today’s mixed tape, the TSX is still closing in on one of its strongest years in more than a decade. Reuters reported the TSX has climbed about 27% in 2025, on track for its biggest annual jump since 2009. ^[33]

That strong run is part of why December trading has become more reactive to catalysts: markets that have already had a powerful year can be quick to consolidate, rotate leadership, and punish crowded trades.

As one strategist told Reuters, the recent three-day slide looked like consolidation—and with seasonality turning more favorable into year-end, investors are watching to see whether risk appetite returns, or whether financial-sector weakness keeps the index pinned down. ^[34]

This midday update reflects publicly reported information available on Dec. 17, 2025. Market prices and headlines can change quickly in the afternoon session.

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