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 edged higher toward 36,000 on Monday as retreating oil prices eased energy-driven inflation concerns. Crude prices pulled back after recent gains, offering some relief amid worries that rising energy costs could fuel inflation and prompt tighter monetary policy. Major banks advanced, with RBC gaining around 1.5%, while TD Bank, BMO, Scotiabank and CIBC each rose more than 1%. Markets widely expect the Bank of Canada to raise interest rates next week. Meanwhile, gold prices rose, lending support to mining shares, although prices later pared most of their gains. In the technology sector, Celestica climbed more than 2.5%, partially recovering from last week’s losses as Wall Street chipmakers rebounded ahead of the company’s third-quarter results. Agnico Eagle fell 0.5% ahead of its earnings report on Wednesday, while other mining stocks also declined.

Futures tracking Canadian stocks rose on Monday as retreating oil prices eased energy-driven inflation concerns. Crude prices pulled back after recent gains, offering some relief to markets amid worries that higher energy costs could push inflation higher and prompt tighter monetary policy. Markets widely expect the Bank of Canada to raise interest rates next week, a prospect that continues to weigh on rate-sensitive stocks. Meanwhile, gold prices rose, lending support to mining shares and helping offset some of the pressure from higher borrowing cost expectations.