TSX climbs as falling oil lifts industrial and mining stocks

The S&P/TSX Composite Index climbed 181.06 points, or about 0.5%, to finish the session at 35,801.09, erasing part of Friday’s drop. The rally came as U.S. crude oil futures fell 7.4% to $96.46 a barrel, a move tied to talks between Iranian and Qatari officials that raised hopes for a de‑escalation in the Middle East and steadier oil supplies. Michael Dehal, senior portfolio manager at Dehal Investment Partners, said, “It’s more repositioning for the new month, along with support from oil and developments in the Middle East.” Gold prices rose 1.8% after rebounding from a year‑low the day before, easing inflation concerns sparked by higher oil. The materials group, which houses metal‑mining stocks, gained 2.3% after a 13.1% slump in October. Industrial shares added 2.5%, led by construction‑engineering firm WSP Global, which jumped 5.4%. Financials rose 1% and the interest‑rate‑sensitive real‑estate sector lifted 2.6%. Canada’s 10‑year government yield slipped 4.9 basis points to 3.750% after briefly touching a two‑month low of 3.737%; the Bank of Canada has warned that rising energy costs could fuel broader inflation. Energy stocks were the only major group to finish lower, sliding 4.8%. Domestic data showed manufacturing contracted in October for the first time this year, weighed down by tariffs and geopolitical uncertainty, while inflation pressures grew.

Context

Oil price swings often move the TSX because Canada is a major energy exporter. A dip in crude can lift industrial and mining stocks by lowering input costs and improving profit outlooks. Weak manufacturing signals slower domestic demand, which can temper broader market optimism.