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TSX ends up 0.2% at 25,680.04

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Eclipses last Friday's record closing high

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CIBC and BMO gain after reporting earnings

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TD tumbles 7.1% as it suspends forecasts

(Updates at market close)

By Nikhil Sharma and Fergal Smith

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

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 ) and of 4.2% for Bank of Montreal's ( BERZ )

shares after both lenders reported quarterly results.

In contrast, Toronto-Dominion Bank ( MLWIQXX ) 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."