TSX Experiences Largest Monthly Gain Since April, Yet Suffers Steep Monthly Loss
TSX Ends Up 2.6% Amid Signs of Potential De-escalation in Middle East Conflict
Canada's main stock index, the Toronto Stock Exchange's S&P/TSX Composite Index, rallied on Tuesday by the most since April, gaining 833.10 points or 2.6% to close at 32,768.04. This marked the index's highest closing level since March 17.
Despite the rally, the S&P/TSX Composite Index still posted its biggest monthly decline in nearly three years, losing 4.6% in March. However, the index was up 3.3% in the first quarter, marking the seventh straight quarterly advance.
| Sector | March Change | Q1 Change |
|---|---|---|
| Materials | +6.1% | +5.6% |
| Technology | +4.8% | +10.2% |
| Financials | +2.5% | +1.2% |
| Energy | -0.6% | +14.9% |
The rally was fueled by signs of potential de-escalation in the Middle East conflict, which had sent oil prices soaring in recent weeks, fueling fears of global inflation that could lead to higher interest rates than previously expected. On Wall Street, the market also surged after a report emerged that U.S. President Donald Trump had told aides he was prepared to halt the military campaign against Iran even if the Strait of Hormuz remained largely closed.
The materials group, which includes metal mining shares, was a standout performer, jumping 6.1% as gold and copper prices climbed. Technology added 4.8% and heavily weighted financials ended 2.5% higher. Energy, however, was the only one of ten major sectors to lose ground, falling 0.6% as the price of oil settled 1.5% lower at $101.38 a barrel.
Domestic data was upbeat, with GDP rising by 0.1% in January on a monthly basis, eclipsing estimates for a flat reading. An advance estimate showed the economy expanding by a further 0.2% in February.
Suncor Energy, a major energy company, announced that the majority of its bitumen output by 2040 will be produced using steam-assisted extraction technology. Its shares ended 0.1% higher.
Read also: Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
Investor Takeaway
Investors should be cautious of the market's volatility and potential for further declines.
More in Market
SpaceX Seeks Record $75 Billion IPO, Potentially Positioning Elon Musk as the World's First Trillionaire
Treasury Yields Experience Largest Increase in Two Weeks Following Release of Labor Market Data
US-Iran Tensions Spark Uptick in Oil Prices Amid Global Market Decline
