TSX Jumps on Favorable Foreign Trade Backdrop
The S&P/TSX Composite Index rose 2.3% to close at 36,341 as Democrats regained control of both chambers of Congress in the US, raising hopes of easing trade tensions. A Democratic majority could constrain some of President Trump’s trade policy decisions. Meanwhile, Canada’s trade surplus widened to C$5.35 billion in September, as higher energy and gold exports to the US appeared to offset the impact of tariffs. Canada and China also extended a deal to reduce Beijing’s agricultural tariffs through the end of 2028. Auto exporters gained, with Magna International up 3.9% and BRP soaring 7.7%. Miners rallied as gold prices climbed alongside a weaker US dollar. Agnico Eagle surged 9.4%, Barrick gained 8% and Wheaton Precious Metals jumped 11.7%. Lower oil prices also supported credit-sensitive stocks, with RBC up 2.5%, TD Bank and CIBC gaining 2.4% and BMO advancing 2.9%.
The S&P/TSX Composite Index rose 2.3% to close at 36,341 as Democrats regained control of both chambers of Congress in the US, raising hopes of easing trade tensions. A Democratic majority could constrain some of President Trump’s trade policy decisions. Meanwhile, Canada’s trade surplus widened to C$5.35 billion in September, as higher energy and gold exports to the US appeared to offset the impact of tariffs. Canada and China also extended a deal to reduce Beijing’s agricultural tariffs through the end of 2028.
Auto exporters gained, with Magna International up 3.9% and BRP soaring 7.7%. Miners rallied as gold prices climbed alongside a weaker US dollar. Agnico Eagle surged 9.4%, Barrick gained 8% and Wheaton Precious Metals jumped 11.7%. Lower oil prices also supported credit-sensitive stocks, with RBC up 2.5%, TD Bank and CIBC gaining 2.4% and BMO advancing 2.9%.