Canada's main stock index, the S&P/TSX composite, rose 0.2% to close at 34,478.74 on Monday, recovering from its largest decline in nearly four months on Friday. Gains were led by energy and technology shares amid easing tensions in the Middle East, according to livemint.com.
The Toronto Stock Exchange's rebound followed a sharp selloff on Friday, with energy stocks adding 1.6% as oil prices settled 0.8% higher. Technology shares also contributed to the gains, while U.S. markets saw a rebound led by the Nasdaq and chipmakers. The improvement came as Iran and Israel announced a halt to attacks on each other, reducing geopolitical risks.
The rally in Canada’s TSX reflects broader market optimism linked to geopolitical developments and sector-specific momentum. Energy stocks benefited from higher oil prices, while technology shares recovered alongside U.S. markets. The Bank of Canada’s interest rate decision scheduled for Wednesday remains a key event for investors, with TD Cowen recently raising price targets on defense companies, signaling confidence in related sectors.
The TSX’s recovery on Monday contrasts with Friday’s sharp drop, marking a 65.29-point gain. Investors will closely watch the Bank of Canada’s upcoming interest rate announcement and ongoing developments in Middle East tensions for further market direction.