• TSX ends up 0.2% at 25,680.04
• Eclipses last Friday's record closing high
• CIBC and BMO gain after reporting earnings
• TD tumbles 7.1% as it suspends forecasts

Dec 5 (Reuters) - Canada's main stock index rose to a record high on Thursday as investors assessed a mixed set of quarterly earnings from top domestic banks and pinned hopes on the Bank of Canada continuing its easing cycle at a policy decision next week.

The Toronto Stock Exchange's S&P/TSX composite index (.GSPTSE) , opens new tab ended up 38.86 points, or 0.2%, at 25,680.04, moving past the record closing high it posted last Friday.

"Overall, several of the Canadian banks have done fairly well considering the circumstances," said Shiraz Ahmed, senior portfolio manager and founder of Sartorial Wealth at Raymond James.

Banks tend to be sensitive to the economy. Canada's unemployment rate has climbed 1.5 percentage points since January 2023 to 6.5% in October, while the government has adopted a more constrained immigration policy and is dealing with the threat of U.S. trade tariffs.

The heavily weighted financials sector rose 0.3%, helped by a gain of 4.4% for the shares of Canadian Imperial Bank of Commerce (CM.TO) , opens new tab and of 4.2% for Bank of Montreal's (BMO.TO) , opens new tab shares after both lenders reported quarterly results.

In contrast, Toronto-Dominion Bank (TD.TO) , opens new tab shares tumbled 7.1% after the bank warned of a challenging 2025 and suspended its medium-term earnings forecast. Canada's second-biggest lender is working through an anti-money laundering remediation program following a U.S. regulatory probe.

The energy sector was up 0.8%, recouping some of Wednesday's decline, as OPEC+ delayed its planned output increase until April 2025. Oil settled 0.35% lower at $68.30 a barrel.

Consumer staples was another bright spot, adding 0.7%.

Canada's employment report for November, due on Friday, could help guide expectations for additional easing by the Bank of Canada.

"There'll be a rate decision here coming up soon, and it's likely going to be a cut," Ahmed said. "So given that, I think that there is a renewed exuberance in the equity market."

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https://www.reuters.com/markets/tsx-futures-flat-with-attention-big-bank-earnings-2024-12-05/