TORONTO, Feb 7, 2026, 16:18 (ET) — Market closed.
Royal Bank of Canada (RY.TO) heads into the week after a weekend break, with shares having closed up 0.7% on Friday at C$232.72.
This shift carries weight: traders hunting for clues on where Canadian rates and growth go next tend to punish bank stocks when the outlook wobbles. RBC, a giant on the Toronto exchange, sets the tone across the sector.
Timing’s another factor. Investors, less interested in daily volatility right now, are focusing on banks’ updates about loan demand, funding costs, and credit quality as earnings season picks up momentum.
Canada’s main stock index surged 1.5% Friday, closing at 32,470.98—marking its strongest single-day gain since Oct. 14. Metal prices bounced higher, luring buyers back after a sharp drop the day before. “A little bit of a relief rally and investors are picking up some of the bargains,” said Philip Petursson, chief investment strategist at IG Wealth Management. Reuters
Canada’s latest jobs release was hardly straightforward. The country recorded a loss of 24,800 positions in January, yet the unemployment rate slipped to 6.5% as participation dropped, according to Reuters. Manufacturing took a notable hit, dropping 27,500 roles. Fitch Ratings’ Joshua Grundleger cautioned that “employees of U.S. trade-exposed industries begin to leave their jobs at higher rates.” TD Economics’ Andrew Hencic weighed in, calling the headline unemployment number “better than expected – but not necessarily tight.” Reuters
RBC economists aren’t calling for any more rate cuts from the Bank of Canada. “We do not expect further interest rate reductions from the Bank of Canada will be necessary,” wrote Nathan Janzen, assistant chief economist at RBC, after the labour numbers landed. RBC
RBC trailed behind several rivals this day. Shares of Toronto-Dominion Bank advanced 1.4%, while Bank of Montreal picked up 1.0%. Scotiabank ticked up 1.1%, and CIBC jumped 2.0%.
RBC’s report will put the spotlight on net interest margin shifts and provisions for credit losses—essentially, how much the bank is setting aside to cover sour loans. Capital markets revenue? That number’s in focus too, after a week that saw sharp moves in both equities and commodities. Volatility could have left its mark.
This risk isn’t new, but it’s back in play: tariffs knock factories, that pain spreads—consumers pull back, businesses stumble, housing feels the strain. Bank credit costs? They tend to rise. And if rate cuts get back on the table, those margins face a squeeze, too.
U.S. inflation figures are up next on the calendar, a potential catalyst for bond yields and global financials. The Bureau of Labor Statistics is set to publish January’s CPI report on Feb. 13. The Bank of Canada follows with its policy rate call March 18.
RBC’s next real test comes Feb. 26, when the bank drops its first-quarter numbers—look for results at about 6:00 a.m. ET, then tune in for the conference call at 8:30 a.m. ET.
