TSX tick higher after index ends prior session near two-week high

Investing.com - Canada’s main stock exchange index is trading slightly higher on Tuesday after metals and mining stocks helped push the index higher in the previous session.

By 11:55 ET (16:55 GMT), the S&P/TSX 60 index had risen by 0.1%.

The S&P/TSX composite index climbed by 1.4% to end at 30,316.63 on Monday, notching its highest closing level since October 28.

A rise in the prices of commodities like oil, gold and copper gave lift to the materials sector, which includes metal and mining names, while optimism around a potential breakthrough in negotiations to end a prolonged U.S. government shutdown also boosted sentiment.

U.S. markets mixed

Elsewhere, U.S. stocks are mixed, with the Dow Jones gaining 0.7%, the S&P 500 down 0.2% and the Nasdaq 100 declining 0.8%. 

The main averages on Wall Street ended higher in the prior session, spurred on by hopes that lawmakers in Washington were close to ending an historically-long shutdown of the U.S. government.

The broad-based S&P 500 rose 1.5%, the blue chip Dow Jones Industrial Average rose 0.8%, and the tech-heavy NASDAQ Composite surged 2.3%, helped by a rebound in big artificial intelligence names, chiefly Nvidia (NASDAQ:NVDA) and Palantir (NASDAQ:PLTR). 

Government set to reopen 

The U.S. Senate voted to send a spending package which would end the longest-ever federal government shutdown to the House of Representatives, as eight Democrats provided the support needed to break a more than month-long impasse.

Republicans, who control both the Senate and the House, are anticipated to continue backing the bill, and then it will be sen to the White House to be signed into law by President Donald Trump.

The bill could mark an end to the longest shutdown in U.S. history, which entered its 41st day on Monday. The shutdown was seen causing widespread disruption in the country, and is also expected to have weighed on gross domestic product in the fourth quarter. 

"The shutdown resolution (even though the government won’t actually reopen for several more days) is clearly a positive, and many feel it gives a bright green light for the much-anticipated year-end rally to finally commence," said analysts at Vital Knowledge, in a note.

UBS sees earnings driving S&P 500 higher 

There are still some corporate results earnings emerging this week, although the bulk of what has been a generally positive third-quarter earnings season is now behind us.

In fact, UBS expects the S&P 500 index to climb to 7,500 next year, from the current 5,830 level, driven by “around 14% earnings growth,” nearly half of which will come from technology stocks.

In a research note on Monday, UBS analysts said the global economy “is poised to accelerate in 2026” as confidence improves and fiscal stimulus gains traction.

But over the next few months, the bank believes the U.S. and other advanced economies must “navigate a soft patch, with tariffs still feeding through to prices and exports.”

UBS predicts the U.S. will lead global equity performance, forecasting roughly 10% returns for the market next year. UBS added that the S&P 500’s gains will come mainly from earnings rather than valuation expansion. 

CoreWeave hit by partner delay 

Shares of CoreWeave (NASDAQ:CRWV) fell premarket after the Nvidia-backed AI cloud services firm flagged a delay at a third-party data center partner.

The update overshadowed otherwise solid third-quarter results from the group, which has recently moved to fortify its position in the AI boom through a series of multibillion-dollar deals with major tech industry names like ChatGPT maker OpenAI and Facebook owner Meta Platforms (NASDAQ:META).

Elsewhere, Paramount Skydance (NASDAQ:PSKY) stock rose after the entertainment company said it is looking to cut an additional $1 billion in savings after first outlining $2 billion when it completed its merger in August. 

Rocket Lab (NASDAQ:RKLB) stock jumped higher after the space company reported a smaller third-quarter loss than expected.

Crude rises 

Oil prices are trading higher, helped by enthusiasm surrounding the possible reopening of the U.S. government.

Brent futures gained 1.8% to $65.21 a barrel, and U.S. West Texas Intermediate crude futures rose 1.7% to $61.15 per barrel.

Earlier this month, the Organization of Petroleum Exporting Countries and allies, known as OPEC+, agreed to increase December output targets by 137,000 barrels per day, the same as for October and November. It also agreed to a pause in increases in the first quarter of next year.

Gold rises

After pulling back from highs earlier in the day, gold is now slightly lower. Even so, recent strength in the dollar has done little to deter bullion. 

Increased risk appetite, as U.S. lawmakers moved closer to ending the country’s government shutdown, also did little to weigh on gold. Markets have been fretting over the shutdown’s economic impact, as well as its delay of fresh measures of the health of the American economy. 

Spot gold has declined 0.1% to $4,113.34 an ounce, while gold futures for December also fell 0.1% to $4,119.70/oz.