FX.co ★ TSX Rises as Oil Dip Eases Inflation Worries

The S&P/TSX Composite Index climbed nearly 1% on Monday, moving back above the 36,000 mark as a decline in oil prices eased inflation concerns. Crude retreated amid optimism over potential US-Iran diplomatic progress, and the drop in energy prices helped dampen inflation expectations, pushing Canadian bond yields slightly lower.

Interest-rate‑sensitive sectors, particularly banks that have been under pressure from elevated inflation and higher borrowing costs, benefited from the improved backdrop. Shares of BMO, Scotiabank, and CIBC each advanced close to 1%.

Rising gold prices provided further support to the market, lifting mining stocks. Barrick gained about 5% after reporting higher third‑quarter profit, as stronger bullion prices more than offset lower production. Franco‑Nevada, which rose roughly 3%, is set to release its earnings on Wednesday.

In corporate news, Strathcona Resources slipped 0.5% after announcing on Sunday that it will acquire Greenfire Resources—whose shares surged 38%—in a transaction valued between C$2.7 billion and C$2.9 billion, including debt. Power Corporation of Canada, up about 0.5%, is also scheduled to report its third‑quarter results on Wednesday.