TSX Recovers to Begin New Week
Canada's commodity-heavy main stock index on Monday rebounded from the previous session's losses, led by gains in mining stocks, while investors looked for potential trade deals between the U.S. and its key trading partners.
The TSX Composite Index recovered 102.65 points to kick off the week at 27,416.66.
The Canadian dollar was ahead 0.12 at 72.95 cents U.S.
Among individual stocks, Osisko Development rose 19 cents, or 5.5%, to $3.54, after the mineral exploration company announced a $450 million credit agreement with funds advised by Appian Capital Advisory.
U.S. Commerce Secretary Howard Lutnick said on Sunday he was confident that Washington could secure a trade deal with the EU, but August 1 is a hard deadline for tariffs to kick in.
However, traders awaited clarity on U.S.-EU trade talks and looked for additional trade deals ahead of Trump's August 1 tariff deadline.
Meanwhile, domestic investors will assess the Bank of Canada's Business Outlook Survey, due later in the day, for business expectations amid tariff-related uncertainty.
Economically speaking, Statistics Canada said its industrial product price index, the Industrial Product Price Index rose 0.4% month over month in June and increased 1.7% year over year. The raw materials index increased 2.7% month over month in June and grew 1.1% year over year.
ON BAYSTREET
The TSX Venture Exchange gained 13.23 points, or 1.7%, to 810.98.
Nine of the 12 TSX subgroups were higher, with gold brighter 3.9%, materials stronger by 2.9%, and telecoms pumping 1.2% higher.
The three laggards were energy, down 0.9%, financials, off 0.2%, and industrials, sliding 0.1%.
ON WALLSTREET
U.S. stocks moved higher on Monday as investors tracked the latest developments in trade and awaited the start of big tech earnings this week.
The Dow Jones Industrial Average leaped 172.34 points to begin a new week at 44,514.43
The S&P 500 sprinted 36.78 points to 6,33.57.
The NASDAQ Composite popped 168.18 points to 21,063.84. S&P and NASDAQ readings hit intraday highs during the first two hours.
The market was bolstered by moves in major technology names. Alphabet increased around 2%, while others like Meta Platforms and Apple advanced more than 1%.
Trade was once again in focus as the White House reiterated its position on tariffs.
On Sunday, U.S. Commerce Secretary Howard Lutnick called Aug. 1 the “hard deadline” for countries to start paying tariffs, though he also added that “nothing stops countries from talking to us after Aug. 1.”
This comes as earnings season is off to a strong start. Of the 62 S&P 500 companies that have reported thus far, more than 85% have topped expectations, according to FactSet data. Earnings for the second quarter are also tracking 5% year-over-year growth following the first week of results, per Bank of America.
The major averages could receive a boost in the week ahead if Alphabet and Tesla — the first of the so-called “Magnificent Seven” companies set to report — manage to beat estimates. The megacaps are expected to be a major driver of earnings growth during the second-quarter earnings season.
One commentator expects the Magnificent Seven will post earnings growth of 14% in the second quarter, while the other 493 S&P 500 companies are seen posting growth of just 3.4%.
Prices for the 10-year treasury climbed, weighing yields to 4.36% from Friday’s 4.42%. Treasury prices and yields move in opposite directions.
Oil prices demurred 68 cents to $66.66 U.S. a barrel.
Gold prices boomed $52.40 to $3,410.700 U.S. an ounce.
