CANADA STOCKS-TSX inches up on commodities boost, but banks fall

By Avinash P

Dec 3 (Reuters) - Canada's stock index edged higher on Wednesday, helped by higher prices of oil and metals, although shares of Royal Bank of Canada and National Bank of Canada fell despite upbeat results.

The S&P/TSX Composite index .GSPTSE rose 0.2% by 10.42 a.m. ET following two consecutive days of losses.

Energy stocks .SPTTEN jumped more than 1% as oil prices LCOc1, CLc1 climbed 1% after Russia said talks with U.S. officials failed to reach a compromise on a Ukraine peace deal that could have eased sanctions on its oil sector. O/R

Materials stocks .GSPTTMT added 0.7% as gains in gold XAU=, silver XAG= and copper CMCU3 prices lifted metal miners.

Royal Bank of Canada RY.TO dipped 0.1%, having hit a record high earlier in the session after the lender topped analyst estimates for fourth-quarter profit, helped by strength in its capital markets segment.

National Bank of Canada NA.TO also topped estimates for fourth-quarter profit, helped by a robust performance in its wealth management segments. But the bank's shares fell 2% on the day, having hit a record high in the previous session.

"Banks are healthy and it alleviates the pressure on the idea of the economy in a recession," said Allan Small, senior investment advisor at Allan Small Financial Group with iA Private Wealth.

"But the question becomes, with banks at all-time highs, how much further can they run? I'm not looking for any tremendous run-ups in these bank stocks right now."

Rising commodity prices and increased odds of U.S. monetary policy easing have been the major drivers behind the TSX's run to record highs in recent days, even as U.S. stocks struggled on concerns about an AI bubble and the impact of U.S. tariffs.

In other corporate news, Enbridge ENB.TO forecast higher core profit for 2026, as the Canadian pipeline operator expects strong demand and new projects entering service.

Canada's labor market report for November is due on Friday, with the economy seen shedding 5,000 jobs last month, as per a Reuters poll of economists. The Bank of Canada is, however, widely seen holding rates next week.