TSX Rises as Falling Oil Prices Ease Inflation Concerns
The S&P/TSX Composite Index rose 0.4% to close at 36,944 on Monday as retreating oil prices eased energy-driven inflation concerns. Lower crude prices offered some relief amid worries that rising energy costs could fuel inflation and prompt tighter monetary policy. Canada’s 10-year government bond yield also fell. Major banks advanced, with RBC and BMO gaining 0.9% each, TD Bank rising 0.7% and CIBC adding 1.5%. Markets widely expect the Bank of Canada to raise interest rates next week. Meanwhile, higher gold prices supported mining shares, with Agnico Eagle up 1.3% and WPM gaining 1.4% ahead of its earnings report on Wednesday.
The S&P/TSX Composite Index rose 0.4% to close at 36,944 on Monday as retreating oil prices eased energy-driven inflation concerns. Lower crude prices offered some relief amid worries that rising energy costs could fuel inflation and prompt tighter monetary policy. Canada’s 10-year government bond yield also fell. Major banks advanced, with RBC and BMO gaining 0.9% each, TD Bank rising 0.7% and CIBC adding 1.5%.
Markets widely expect the Bank of Canada to raise interest rates next week. Meanwhile, higher gold prices supported mining shares, with Agnico Eagle up 1.3% and WPM gaining 1.4% ahead of its earnings report on Wednesday.