On Monday, the S&P/TSX Composite Index climbed by 1.5%, closing at 30,604. This surge was primarily driven by heightened expectations for a potential interest rate cut from the US Federal Reserve in December. The anticipation grew following remarks from Fed official John Williams, who indicated that rates might decrease in the near term. This sentiment was ahead of key economic indicators such as US retail sales and producer prices data scheduled for release later in the week.
The rising prospect of a more accommodating monetary policy particularly benefitted sectors sensitive to interest rates. Technology stocks and large mining companies led the market's upward trajectory, with Celestica soaring 15%, Shopify gaining 5.2%, and Constellation Software increasing by 2.8%. Furthermore, Barrick Mining experienced a substantial boost of 8.5% following the Mali government's verbal agreement in principle to address the Loulo Gounkoto dispute. This positive development also uplifted other companies in the sector, including Agnico Eagle and Wheaton Precious Metals, which saw increases of 4.1% and 3.6%, respectively.
However, the energy sector did not share the same fortune. Canadian Natural Resources fell by 1.3% amid reports that suggested a potential peace deal involving Ukraine could alleviate sanctions on Russian exports, potentially exerting downward pressure on prices for major energy producers.
