The S&P/TSX Composite Index climbed 2.3% to close at 36,341 after Democrats regained control of both chambers of the U.S. Congress, boosting expectations of reduced trade tensions. A Democratic majority is seen as potentially limiting some of President Trump’s trade-policy initiatives.
Canada’s trade surplus widened to C$5.35 billion in September, as stronger energy and gold exports to the U.S. appeared to offset the effects of existing tariffs. In addition, Canada and China extended an agreement to lower Beijing’s agricultural tariffs through the end of 2028.
Auto exporters advanced, with shares of Magna International up 3.9% and BRP surging 7.7%. Miners also rallied as gold prices rose in tandem with a weaker U.S. dollar: Agnico Eagle jumped 9.4%, Barrick added 8%, and Wheaton Precious Metals surged 11.7%.
Softer oil prices supported credit-sensitive financials, with Royal Bank of Canada up 2.5%, Toronto-Dominion Bank and Canadian Imperial Bank of Commerce each gaining 2.4%, and Bank of Montreal rising 2.9%.