TSX gains after index notches another all-time high

Investing.com -  Canada’s main stock exchange was higher on Monday, after the average notched a fresh record high at the end of the prior trading week.

The S&P/TSX Composite index gained 141 points or 0.47% at 30,613.45. 

Index climbed by 1% to end at 30,471.68 on Friday, logging its consecutive winning session and surpassing an all-time closing high registered on Thursday. The index jumped by 2.4% for the week.

A steeper-than-expected contraction in Canada’s services sector in September bolstered bets for further interest rate cuts by the Bank of Canada this month, while Shopify shares advanced by 6.5%, lifting the wider technology segment.

U.S. stocks gain

U.S. stocks higher on Monday, with investors maintaining their expectations for upcoming interest-rate cuts this month despite an ongoing U.S. government shutdown.

The benchmark S&P 500 had climbed by 13 points, or 0.2%, and the tech-heavy Nasdaq Composite had gained 75 points, or 0.3%. Meanwhile, the blue-chip Dow Jones Industrial Average had slipped by 65 points, or 0.1%.

The main averages on Wall Street had a volatile session on Friday, with the benchmark S&P 500 and blue-chip Dow Jones Industrial Average notching record closing highs, while the Nasdaq Composite edged down by 0.3%.

The partial shutdown of the U.S. government has also led to the delay of official economic data, including the all-important nonfarm payrolls report.

These postponements have led to heightened scrutiny of private-label economic figures over the last few days. Trackers of private employment and business activity, in particular, signaled "darkening storm clouds" and elevated inflation ahead, analysts at Vital Knowledge said in a note.

The absence of official data has also taken on more importance with the Fed set to unveil a fresh interest rate decision in October. Despite the lack of government numbers, markets are still widely anticipating that the central bank will opt to roll out more borrowing cost reductions at its next policy meeting, according to CME’s FedWatch Tool.

All the while, the shutdown drags on, with Republicans and Democrats at odds over healthcare assurances. On Sunday, a top White House official warned that mass layoffs of federal workers will begin if President Donald Trump decides that talks with congressional Democrats to end the shutdown are "absolutely going nowhere."

Constellation Brands earnings ahead

In individual stocks, Constellation Brands (NYSE:STZ) is due to post its August quarter returns after the closing bell on Monday.

The alcoholic beverage maker missed both sales and income estimates during the prior quarter. Like many of its peers, Constellation has been grappling with the twin blows of Trump’s rising tariffs on aluminum and broader economic uncertainty that has led some shoppers to rein in purchases of beers and wines.

Meanwhile, shares of Critical Metals Corp. (NASDAQ:CRML) soared by more than 75% in premarket trading on Monday amid media reports around a potential Trump administration investment in the group.

The White House has held talks about taking an equity stake in Critical Metals, the company developing Greenland’s Tanbreez rare earth deposit, Reuters reported on Friday, citing people familiar with the matter.

Such a move would give Washington a direct interest in one of the world’s largest untapped sources of rare earths, a sector dominated by China, the report said.

According to the Reuters report, officials are considering converting a $50 million Defense Production Act grant application by Critical Metals into an equity investment. If finalized, that conversion could translate into about an 8% stake in the company, though discussions remain preliminary and may not result in a deal.

Oil prices climb

Oil prices rose sharply, rebounding from losses last week, after the Organization of the Petroleum Exporting Countries and its allies agreed to a smaller-than-expected output increase for November that eased some market fears of a global supply glut.

At its meeting on Sunday, the producer alliance, known as OPEC+, said it would raise production by 137,000 barrels per day (bpd) in November, matching the increment approved for October.

That fell well short of the up to 500,000 bpd increase some market participants had anticipated, a prospect that had partially fueled last week’s sell-off.

The decision provided relief to traders who had feared a flood of new barrels would overwhelm fragile demand. OPEC+, which has already added more than 2.7 million bpd of supply this year, has been gradually unwinding the record cuts put in place during the pandemic.

As of 06:18 ET, Brent Oil Futures expiring in December jumped 1.9% to $65.76 per barrel, while West Texas Intermediate (WTI) crude futures climbed 2.0% to $62.09 per barrel.