TSX seen higher on U.S. government shutdown optimism; Barrick Gold impresses

Investing.com - Canada’s main stock exchange futures rose Monday, continuing the positive global sentiment on optimism that the U.S. government shutdown could soon end. 

Toronto Stock Exchange’s S&P/TSX Composite closed Friday 0.2%, or 43 points, higher at 29,912.19, and the S&P/TSX 60 INDEX contract climbed higher still early Monday.

U.S. government shutdown to end?

Sentiment received a boost over the weekend after U.S. Senate lawmakers took a critical step over the weekend towards potentially ending the country’s longest government shutdown. 

The Senate advanced a bill that will fund the government until January 30 after eight Democrats moved to break the impasse.

If the Senate eventually passes the amended bill, the package still must be approved by the House of Representatives and sent to President Donald Trump for his signature, a process that could take several days.

The shutdown sparked disruptions across the country, especially in key sectors such as air travel, prompting White House economic adviser Kevin Hassett to state in an interview that the U.S. economy, widely seen as the global economy’s main growth driver, could contract in the fourth quarter if the shutdown dragged on.

BOC summary due this week

Wednesday sees the release of the Bank of Canada’s summary of deliberations in the wake of the central bank’s decision to lower its benchmark overnight rate by 25 basis points to 2.25% in its October 2025 meeting.

Canada’s job market made a surprise gain in October, reversing past declines, and its unemployment rate fell, data showed on Friday, a bright spot in a country that has suffered from U.S. President Donald Trump’s tariffs.

This could point to the Bank of Canada holding interest rates at the current level for some time, especially given the current uncertain backdrop. 

Barrick Mining impresses with Q3 results

In the corporate sector, Barrick Mining (TSX:ABX) raised its quarterly dividend, increased its share buyback program and beat expectations for third-quarter adjusted profit, as record-high gold prices helped offset lower production.

Barrick said its average realized gold price rose to $3,457 per ounce during the third quarter from $2,494 per ounce a year earlier.

Its quarterly production decreased to 829,000 ounces from 943,000 ounces last year.

Gold prices rise sharply

Gold prices rose sharply, rising back above the symbolic $4,000 an ounce level on some weakness in the dollar, with the Federal Reserve seen cutting interest rates in December. 

Spot gold traded 1.9% higher to $4,077.00 an ounce and gold futures gained 1.9% to $4,085.65/oz. 

Oil prices rose Monday on optimism that the end of the U.S. government shutdown was near, potentially lifting demand in the world’s top oil consumer.

Brent futures gained 0.2% to $63.78 a barrel, and U.S. West Texas Intermediate crude futures rose 0.2% to $59.89 a barrel.