TSX boosted by mining stocks, Fed rate cut optimism
The Toronto Stock Exchange's S&P/TSX composite index rose 1.8% by 10:05 ET (0205 GMT) to 27,495.10 points, after three straight sessions of declines.
Global stocks were lifted after traders ramped up bets of a U.S. rate cut in September to almost 94%, according to CME Fedwatch, following last week's soft U.S. nonfarm payrolls data.
'People see (unemployment numbers) as being the rationale for a reduction in interest rates at the Fed, and that's essentially positive for stock markets,' said Thomas Caldwell, Chairman at Caldwell Securities.
'Earnings are coming across fairly well and so the world is moving on, but there's this undercurrent of what will be the longer term damage of tariffs and this upending of world trade.'
On the day, material stocks were among top gainers, with gold mining stocks adding 6%.
Kinross Gold Corp gained 9% to the top of the index while Novagold, IAMGOLD and Seabridge Gold were up more than 5% each.
First Quantum Minerals' shares rose 4.4% after the miner signed a $1 billion deal with Royal Gold.
Tech stocks rose 2.8%, boosted by e-commerce platform Shopify's 5.43% climb after brokerage Benchmark raised its target price ahead of earnings on Wednesday.
Electronics firm Celestica rose 3% and cybersecurity firm Blackberry climbed 3.4%.
All sectors were in the green after TSX posted its biggest decline since April in Friday's selloff.
Data showed Canada's merchandise trade deficit widened in June to C$5.9 billion ($4.24 billion) with imports outpacing exports.
Canadian ministers are set to start discussing trade with Mexican President Claudia Sheinbaum on Tuesday. U.S. President Donald Trump put a 35% tariff on goods imported from Canada last week.
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