TSX rises with U.S.-China trade discussions in focus

Investing.com - Canada’s main stock exchange is trading higher on Monday, after the index slipped to end the prior trading week.

The S&P/TSX 60 index standard is up 1%.

The S&P/TSX composite index fell by 1.2% to finish at 30,108.48 in the previous session. The decline pared back much of the advance the average had posted for the week. So far on Monday it is up 1.1%.

Materials shares, which fold in metal mining and fertilizer stocks, slumped by 6%, the largest dip for the sector since early April. After surging over much of the past week, gold prices pulled back from all-time highs on Friday.

U.S. stocks gain

U.S. stocks have also risen on Monday, boosted by hopes for more trade talks with China at the start of a week that includes a slew of big-name earnings reports as well as important inflation data.

At 11:52 ET (16:52 GMT), the Dow Jones Industrial Average gained 389 points, or 0.8%, the S&P 500 index rose 67 points, or 1%, and the NASDAQ Composite climbed 315 points, or 1.4%.

The main averages all closed higher at the end of last week, after President Donald Trump suggested that his proposed triple-digit tariffs on China were not sustainable, raising hopes that trade tensions between the two largest economies in the world could be smoothed over.

Sentiment lifted by easing U.S.-China tensions

Trump also confirmed that a meeting later this month with Chinese counterpart Xi Jinping in South Korea will go ahead, adding in a television interview that the U.S. is "going to be fine with China."

Treasury Secretary Scott Bessent later said he expects to meet with Chinese Vice Premier He Lifeng this week in a bid to prevent an escalation of the levies. Chinese state news sources noted that He and Bessent held "constructive discussions" and had agreed to conduct fresh trade discussions as soon as possible.

Heightened U.S.-China tensions had battered Wall Street earlier in October, with stock benchmarks falling from record highs after Trump threatened to impose 100% tariffs against China, drawing a sharp rebuke from Beijing.

Data released earlier Monday showed that China’s economy grew slightly more than expected in the third quarter of 2025, but at its slowest pace in a year amid persistent headwinds from rampant disinflation and U.S. trade tensions.

Tesla, Netflix to headline earnings slate this week

Apart from the trade talks, traders will be keeping tabs this week on corporate earnings from a host of major Wall Street companies, with streaming giant Netflix due on Tuesday and electric vehicle maker Tesla (NASDAQ:TSLA) on Wednesday.

Others, including GE Aerospace, Coca-Cola, Philip Morris, Rtx Corp, General Motors, Lockheed Martin and Texas Instruments will report earnings during the week.

The focus will be squarely on whether corporates have continued to generate profits amid disruptions from trade tariffs and a cooling labor market. Markets are seeking more cues on the U.S. economy as an ongoing government shutdown has delayed the release of several key economic readings.

Major Wall Street banks reported positive third-quarter earnings last week, offering markets some support.

Elsewhere, Apple’s iPhone 17 series has outperformed its predecessor by 14% during the first 10 days of availability in the United States and China, according to data released Monday by Counterpoint Research.

Amazon will also be in the spotlight after an outage to the retail giant’s Web Services, the backbone of many sites.

Crude prices slip 

Oil prices fell, adding to recent losses as escalating U.S.-China trade tensions added to persistent concerns over sluggish demand and a looming supply glut.

Brent futures dropped 1.3% to $60.50 a barrel, and U.S. West Texas Intermediate crude futures fell 1.2% to $56.48 a barrel.

Both benchmarks declined more than 2% last week, marking their third consecutive weekly decline, partly due to the International Energy Agency’s outlook for a growing supply glut in 2026.

Gold jumps

Gold prices have jumped on Monday, recouping a most of its recent losses and keeping recent record highs close as markets digested some conciliatory comments from U.S. officials on a trade conflict with China.

Spot gold rose 2.3% to $4,351.48 an ounce, while gold futures for December rose 3.6% to $4,366.49/oz by 11:55 ET.

The yellow metal tumbled from record highs last week after Trump raised doubts over a prolonged trade war with China, while also stating that upcoming talks with Beijing remained on track.

This appeared to have taken some sheen off of gold’s safe-haven appeal, which has partly driven a recent rally in bullion.