TSX Gains Led by Base Metals Rally
The S&P/TSX Composite Index climbed approximately 1% on Monday, closing at 35,984.56. The gain was primarily driven by the materials sector, where base metals stocks surged 3.4%. Copper December futures added 1.2%, while prices for gold and silver also moved higher.
Industrial stocks contributed to the broader market advance, rising 2.2%. The positive momentum in commodities outweighed losses in other sectors, helping to lift the benchmark index despite mixed economic data from within Canada.
Energy Stocks Slide on Iran Diplomatic Signals
Energy stocks fell 2.9% as crude oil prices slid roughly 6%. The decline in energy equities followed a report by CNBC stating that U.S. President Donald Trump preferred a diplomatic path regarding Iran.
The report indicated that Trump had not made a decision on a potential military attack before Tuesday’s U.S. midterm elections. The shift in sentiment toward diplomacy contributed to the drop in oil prices, which weighed heavily on Canadian energy companies listed on the TSX.
Canadian Manufacturing Contracts Amid Trade Uncertainty
New economic data showed that Canadian factory activity slipped into contraction. S&P Global reported that Canada’s manufacturing purchasing managers' index (PMI) dropped to 49.6 in October from 51.5 in September.
Readings below 50 indicate that activity is shrinking. The report flagged weaker output and new orders, citing tariffs and geopolitical uncertainty as contributing factors to the decline in manufacturing performance.
Trade Relations Remain a Focus
Trade policy remained a central theme for investors as Prime Minister Mark Carney addressed ongoing negotiations with the United States. Carney stated on X that he had a "good conversation" with Trump.
He added that teams from both countries would continue working on Canada-U.S. trade issues in the coming weeks. The focus on diplomatic efforts and trade outcomes continues to influence market sentiment regarding Canadian economic prospects.