FX.co ★ TSX Rebounds at Week's Start

On Monday, the S&P/TSX Composite Index climbed 0.8% to close at 32,184, recovering from Friday’s steep decline. This upward movement was driven by gains in financials, consumer staples, and technology sectors, which successfully outweighed continued weaknesses in the energy sector. Leading the rally were Canada’s major banks; Royal Bank, TD, BMO, Scotiabank, and CIBC recorded increases ranging from 1% to 2.2%, buoyed by robust earnings forecasts, appealing dividend yields, and renewed investor interest after last week's downturn. The technology sector provided additional momentum, with Shopify and Celestica posting gains of 1.1% and 1.9% respectively. Consumer staples outshone other sectors, highlighted by Loblaw and Couche-Tard surging by 4.4%. Meanwhile, gold-linked mining stocks found stability after Friday’s downturn; however, the performance was mixed as Eldorado Gold fell sharply by 8.5% following its acquisition of Foran Mining. Energy producers lagged behind, impacted by declining oil prices. On another note, Canada’s manufacturing PMI returned to a growth phase in January, registering at 50.4—its first reading above 50 in a year—mitigating concerns about near-term industrial momentum.