The Toronto Stock Exchange rose to a third-straight record close on Thursday, climbing past the 25,000-point mark it had been unable to sustain over the previous two sessions.

The S&P/TSX Composite Index closed up 60.65 points to 25,049.67. Energy, up 2.36% and Utilities 0.69%, topped the advancing sectors, while Information Technology was the biggest decliner, down 3.46%.

In stock related news, Paramount Resources (POU.TO) on Thursday agreed to sell Ovintiv (OVV.TO, OVV) its Karr, Wapiti and Zama properties in Western Canada's Montney share field for $3.33 billion in cash plus certain Horn River Basin properties owned by Ovintiv.

National Bank noted Paramount disposed of two thirds of its production and three quarters of its cash flow in the sale, "significant (but on-brand)" evolution for the company. On key takeaways, National said Paramount crystallized meaningful value and upside through the disposition of its mature assets, to refocus on high-impact growth in earlier stage assets.

On Ovintiv, National Bank noted it announced two significant transactions, acquiring certain Montney assets from POU for US$2.38 billion, while also entering into an agreement to sell its assets in Colorado's Uinta basin for US$2 billion.

National said the acquisition provides Ovintiv with approximately 70,000 barrels per day of incremental production in the Alberta Montney in addition to 109,000 net acres (80% undeveloped) of exploration properties and approximately 600 premium well locations.

West Texas Intermediate (WTI) crude oil closed with a gain on Thursday even after a report showed a larger than expected rise in U.S. oil inventories and the International Energy Agency (IEA) left its 2024 demand forecast unchanged while expecting supply to exceed demand next year on rising non-OPEC production. WTI crude oil for December delivery closed up US$0.27 to settle at US$68.70 per barrel, while January Brent crude closed up US$0.28 to US$72.56.

Gold traded at a two-month low late afternoon on Thursday, falling for a fifth-straight session as the dollar continued its post-election rally and rose to the highest in more than two years while another U.S. inflation measure rose last month. Gold for December delivery was last seen down US$13.7 to US$2.572.80 per ounce, the lowest since Sept.11.

National Bank also noted on Thursday that the end of the U.S. election doesn't mean the interest rate outlook has become any clearer. On the contrary, it said, fiscal and trade policy uncertainty creates a myriad of paths for the economy and inflation.

If President-elect Trump's campaign promises are fulfilled, U.S. growth prospects for 2025 and beyond look much better, it added. "Unfortunately, this could also prevent the Fed from finishing the job on inflation in short order," National Bank noted.

National said it still sees scope for further rate relief in the U.S. as the calendar turns, based on its job market outlook. But the bank no longer expects a return to 50 basis point cuts early next year.

"Political/fiscal risks may not prevent the Fed from further near-term easing, but these, along with economic resilience, could see them err on the side of restriction when deciding how much to ease by," it added.

In Canada, National thinks "there remains a strong case to continue with forceful rate relief" and it therefore still expects a 50 basis point rate cut next month. It said further easing in 2025 is warranted, leaving the policy rate on track for 2% next summer. Indeed, National's Canadian rate outlook is little changed from October despite a more material revision to its Fed call. It noted the result, of course, is greater divergence in North American monetary policy.

"We'll reiterate we don't see this as problematic, and Senior Deputy Governor Carolyn Rogers again reminded us that they're not "anywhere near" the limits of policy rate divergence," National Bank added.

According to National Bank, a relatively faster pace of rate cuts owing to a relatively softer Canadian economy should produce a weaker Canadian dollar. It sees the loonie hitting near 1.45 versus the greenback in 2025. However, National said, when deciding between supporting the economy and preventing a few cents of depreciation, the Bank of Canada's choice is "easy".

National added: "The policy rate gap widening another 25, 50 or even 75 basis points is unlikely to keep Governing Council up at night. Keep in mind, these scenarios would all leave the differential smaller than the 250 basis point gap that prevailed in the late 1990s. That appears to be the 'limit' policymakers have been referring to."