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TSX ends up 1% at 31,477.57

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Eclipses Friday's record closing high

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CIBC shares rise 4.1% after earnings beat

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Shares of Decartes jump 14.4%

(Updates at market close)

By Fergal Smith

Dec 4 (Reuters) - Canada's main stock index rose to a

record high on Thursday as stronger-than-expected bank earnings

boosted financial shares and investors bet on an improving

economic outlook next year.

The S&P/TSX Composite index ended up 317.03

points, or 1%, at 31,477.57, eclipsing the record closing high

it posted last Friday.

"The glass half-full interpretation is markets are

forward-looking," said Brian Madden, chief investment officer at

First Avenue Investment Counsel. "The fact that markets are

strong is probably discounting an improving economic backdrop

going into 2026."

Canada's economy has been held back this year by trade

uncertainty. Still, it grew much more than expected in the third

quarter and could get a lift from increased fiscal spending.

Canadian Prime Minister Mark Carney has committed billions

of dollars to fight U.S. tariffs, boost defense spending and

diversify trade.

Canadian lenders TD Bank, Bank of Montreal ( BNKD )

and CIBC topped analyst estimates for fourth-quarter

profit, boosted by their capital markets businesses that

benefited from a rebound in dealmaking and higher trading

revenue.

Shares of CIBC and TD rose 4.1% and 2% respectively to

record highs, while BMO's shares ended 0.1% lower.

The other three big-six banks - Royal Bank of Canada

Scotiabank and National Bank of Canada ( NTIOF ) -

reported earlier in the week and they too beat estimates.

Energy added 0.3% as the price of oil

settled 1.2% higher at $59.67 a barrel. Investors' expectations

for the Federal Reserve to cut interest rates and stalled

Ukraine peace talks helped underpin oil prices.

Logistics software firm Descartes Systems Group Inc ( DSGX )

was a standout. Its shares jumped 14.4% after the company's

third-quarter revenue beat estimates.

The technology sector was up 2.7% and consumer staples added

1.3%.