Canada’s commodity-heavy main stock index on Monday rebounded from the previous session’s losses, led by gains in mining stocks, while investors looked for potential trade deals between the U.S. and its key trading partners.
The S&P/TSX composite index was up 0.2% at 27,372.76 points.
In the latest trade development, U.S. Commerce Secretary Howard Lutnick said on Sunday he was confident that Washington could secure a trade deal with the EU, but August 1 is a hard deadline for tariffs to kick in.
However, EU diplomats said the 27-member bloc is exploring a broader set of possible counter-measures against the U.S., as hopes for a breakthrough deal with Washington dwindled.
Traders awaited clarity on U.S.-EU trade talks and looked for additional deals from major U.S. trading partners ahead of President Donald Trump’s August 1 tariff deadline.
“It (aspects of a potential trade deal) just seems to go back and forth…trying to forecast what’s going to happen has consistently got investors burned over the past few months”, said Josh Sheluk, portfolio manager at Verecan Capital Management.
He added that it is better for investors to stay patient and avoid getting caught up in the daily noise around tariffs.
Meanwhile, domestic investors looked forward to the Bank of Canada’s Business Outlook Survey, due later in the day, for business expectations amid tariff-related uncertainty.
On the TSX, materials stocks led the sectoral gains with a 2.3% rise, tracking gold prices.
Energy subindex fell 0.4% as oil prices slightly dipped.
Among individual stocks, Osisko Development rose 2.2% after the mineral exploration company announced a $450 million credit agreement with funds advised by Appian Capital Advisory.
In the U.S., several industrial and tech firms are set to report their earnings this week, with Alphabet and Tesla kicking off the results season for the “Magnificent Seven” stocks.
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