On Monday, the Toronto Stock Exchange (TSX) moved closer to its recent record high. Resource shares led the way. The TSX Composite Index closed up 0.85%.
It reached 25,658.86 points. Energy stocks were some of the amongformers. The sector gained 2.1% as oil prices settled 1.9% higher.
The materials sector also saw a big rise, up 2%. This was driven by a record high in gold prices. MDA Space had a sharp increase, jumping nearly 13%.
Gold surged to a record high. This was due to investor worries over possible changes in U.S. trade policy. Upcoming remarks from Federal Reserve Chair Jerome Powell on tariffs and inflation also played a role.
Global shares increased as markets shrugged off U.S. President Donald Trump’s threats about tariffs on steel and aluminum. These moves could potentially limit the scope for rate cuts. Wall Street’s main indexes rose, recovering from last week’s declines.
Steelmakers surged. The Dow Jones Industrial Average rose 0.21% to 44,396.92. The S&P 500 gained 0.34% to 6,046.4. The Nasdaq Composite advanced 0.74% to 19,668.178.
The Toronto Stock Exchange’s S&P/TSX composite index opened 0.98% higher at 25,691.57. Metal Mini, lifted by metal mining shares investors, is getting results from PrairieSky Royalty Ltd.
On Wall Street, markets are watching McDonald’s Corp. and Loews Corp earnings. “These could be a strategic negotiating tool for President Trump or the beginning of a prolonged trade war,” said Stephen Dover, head of the Franklin Templeton Institute.
TSX boosted by resource stocks
“Nearly half of U.S. imports serve as inputs for domestic companies. This means businesses must pass higher costs to consumers, absorb lower margins, or adjust supply chains entirely.
Overseas, the pan-European STOXX 600 was up 0.57% in morning trading.
Britain’s FTSE 100 rose 0.79%. Germany’s DAX gained 0.57%. France’s CAC 40 advanced 0.29%.
In Asia, Japan’s Nikkei closed 0.03% higher. Hong Kong’, and Hang Seng rose 1.84%. Oil prices rebounded despite lingering fears over a potenof global trade war after U.S. Pfollowingent Donald Trump’s latest tariff plans.
Brent crude futures climbed 1.4% to US$75.71 a barrel. West Texas Intermediate (WTI) crude traded at US$72.05 a barrel, up 1.5%. Spot gold was up 1.5% at US$2,903.19 an ounce after hitting a record high of US$2,905.98 earlier in the session.
U.S. gold futures also climbed 1.5% to US$2,929.70. The Canadian dollar weakened against its U.S. counterpart. The day range on the loonie was 69.54 US cents to 69.98 US cents in early trading.
The U.S. dollar index gained 0.16% to 108.22. The Euro was down 0.06% to US$1.0324. The British Euro then slid 0.11% to US$1.2389.
Toronto-Dominion Bank intends to exit its full equity investment in U.S. financial services firm Charles Schwab, the companies said on Monday. McDonald’s reported a steeper-than-expected drop in quarterly U.S. comparable sales. Demand took a hit from a brief E.coli outbreak while diners remained watchful of their spending.
Key economic indicators include China’s CPI, PPI, aggregate yuan financing, and new yuan loans. In Japan, bank lending data was also released.
The Bank of Canada’s Market Participants Survey for Q4 is set to provide further insights into economic conditions.
