Canada’s main stock index rose on Monday, led by gains in energy and mining shares, coupled with a slightly upbeat sentiment on Wall Street after U.S. economic data.
The TSX Composite Index hiked 112.17 points by noon EDT Monday to 24,665.57, off its highs of the morning.
The Canadian dollar increased in price 0.29 cents to 69.86 cents U.S.
Focus is now on the U.S. Fed’s interest rate decision on Wednesday.
Traders widely expect the Fed to keep rates on hold, but they will look for policymakers’ comments about the central bank’s policy outlook amid concerns that economic growth could be hit by the trade war.
The Organization for Economic Cooperation and Development on Monday forecast that tariff hikes will drag down growth in Canada, Mexico and the United States while driving up inflation, forcing central banks to keep interest rates higher for longer.
On the economic stage, Statistics Canada told us foreign investors acquired $7.9 billion of Canadian securities in January, led by the highest monthly investment in the Canadian bond market since April 2020.
Meanwhile, Canadian investors reduced their holdings of foreign securities by $3.2 billion, mainly of U.S. equity securities.
Housing starts totaled 229,000 in February, compared to 239,000 in the prior-year month.
Elsewhere, the Canadian Real Estate Association report of MLS listing for February showed national home sales dropped 9.8% month-over-month. Actual (not seasonally adjusted) monthly activity came in 10.4% below February 2024.
ON BAYSTREET
The TSX Venture Exchange eked higher 1.91 points to 623.04.
All but two of the 12 TSX subgroups remained stronger by noon Monday, with energy better by 1.1%, gold improving 1%, and materials up 0.9%.
The two laggards were consumer staples, down 0.2%, and industrials, easing off 0.1%.
ON WALLSTREET
The S&P 500 rose on Monday as the benchmark tries to continue its comeback from correction territory following a four-week rout on Wall Street exacerbated by President Donald Trump’s chaotic tariff policy rollout and falling consumer confidence.
The Dow Jones Industrials charged 208.36 points to break for lunch at 41,689.19, bolstered by gains in Walmart and International Business Machines
The much-broader index gained 8.57 points to 5,647.51.
The NASDAQ let go of gains by noon hour and slid 69.07 points to 17,685.02.
Helping sentiment was the February retail sales report, as traders breathed a sigh of relief that the figures weren’t worse. Retail sales increased 0.2% on the month, below the Dow Jones estimate for a 0.6% increase, according to the advanced reading Monday from the Commerce Department. But excluding autos, the increase was 0.3%, which was in line with economists’ expectations.
The S&P 500 closed in a correction on Thursday, down more than 10% from its record high in late February. It then soared 2% on Friday as investors snapped up beaten-up technology shares. Investors were continuing some of that tech buying on Monday with Nvidia and Palantir higher.
Prices for the 10-year Treasury eked higher Monday, lowering yields to 4.27% from Friday’s 4.32%. Treasury prices and yields move in opposite directions.
Oil prices added 21 cents to $67.39 U.S. a barrel.
Prices for gold regained $2.20 an ounce to $3,003.30 U.S.
