The Toronto Stock Exchange (TSX) neared a recent record high on Tuesday. Resource shares led the way with big gains. The TSX Composite Index closed up 0.85% at 25,658.86 points.
The energy sector rose 2.1% as oil prices settled up 1.9%. Materials stocks also climbed 2% with gold prices hitting a record high. MDA Space was a standout performer.
Its shares jumped nearly 13%. In related markets, gold surged to a record high. Investors braced for more changes in U.S. trade policy.
They also waited for comments from Federal Reserve Chair Jerome Powell on tariffs and inflation. Global shares edged higher as markets shrugged off U.S. President Donald Trump’s tariff threats on steel and aluminum. This inflationary move could limit the scope for rate cuts.
Wall Street’s main indexes opened higher, 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 at the bell. The TSX opened 0.98% higher at 25,691.57, lifted by metal mining shares. In Canada, investors are watching results from PrairieSky Royalty Ltd.
On Wall Street, the focus is on earnings from McDonald’s Corp. and Loews Corp. “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.
“Nearly half of U.S. imports serve as inputs for domestic companies, meaning businesses will either have to pass higher costs to consumers, absorb lower margins, or adjust supply chains entirely.”
Overseas markets were mostly higher.
resource stocks lift tsx higher
The pan-European STOXX 600 rose 0.57% in morning trading.
Britain’s FTSE 100 gained 0.79%. Germany’s DAX was up 0.57%. France’s CAC 40 advanced 0.29%.
In Asia, Japan’s Nikkei closed 0.03% higher. Hong Kong’s Hang Seng rose 1.84%. Oil prices rebounded despite lingering fears over a potential global trade war after Trump’s latest tariff plans.
Brent crude futures climbed 1.4% to $75.71 a barrel. West Texas Intermediate (WTI) crude traded at $72.05 a barrel, up 1.5%. Spot gold was up 1.5% at $2,903.19 an ounce, after hitting a record high of $2,905.98 earlier in the session.
U.S. gold futures also climbed 1.5% to $2,929.70. The Canadian dollar weakened against its U.S. counterpart. The loonie ranged from 69.54 to 69.98 US cents in early trading.
The U.S. dollar index gained 0.16% to 108.22. The euro slipped 0.06% to $1.0324. The British pound slid 0.11% to $1.2389.
The yield on the U.S. 10-year note was last down at 4.492%. In corporate news, Toronto-Dominion Bank plans to exit its full equity investment in U.S. financial services firm Charles Schwab. McDonald’s reported a steeper-than-expected drop in quarterly U.S. comparable sales.
On the economic front, investors monitored China’s CPI, PPI, aggregate yuan financing, and new yuan loans data. Japan released bank lending figures. The Bank of Canada’s Market Participants Survey for Q4 is also on tap.
