(RTTNews) - Rebounding from Friday's losses, Canadian stocks moved higher on Monday after market sentiments were boosted following the release of stronger-than-expected Purchasing Managers' Index data that showed expansion in the manufacturing sector.
After opening just a little below the previous week's close, today the benchmark S&P/TSX Composite Index gained momentum to trade positively throughout the session before settling at 32,183.88, up by 260.36 points (or 0.82%).
Nine of the 11 sectors posted gains today, with the consumer staples sector leading the pack.
On the economic data front, S&P Global's Canada Manufacturing Purchasing Managers' Index rose to 50.4 for January 2026 from 48.6 in the previous month. This marks the end of an eleven-month downturn, indicating that there is an expansion of industrial activity despite U.S. tariff pressures and prevailing global trade uncertainty.
Last weekend, after U.S. President Donald Trump announced that he has finalized Kevin Warsh as his choice to succeed current U.S. Federal Reserve Chair Jerome Powell, stocks linked to gold and silver plummeted, pulling down the index.
As Warsh is known for his "hawkish" stance, markets discounted any future rate cuts for this year, and the U.S. dollar index gained while metals slumped.
Gold prices today extended the losses.
Signaling a potential de-escalation of the U.S.-Iran conflict over Iran's nuclear program, Trump yesterday announced that Iran was "seriously talking with the U.S."
As signs of easing of tensions surface, oil prices turned to the downside, leading to losses in the oil-linked energy sector stocks in Canada market.
While the weakness in the energy sector weighed on the index, strength in the consumer staples and financial sectors overrode the losses.
Last week, Prime Minister Mark Carney promised to help low-income consumers to shield the effects of rising grocery prices by including a 25% hike to the GST credit over the next five years along with a one-time payment in the spring season worth 50% of the credit.
Today, the office of the Parliamentary Budget Officer (the government's budget watchdog) stated that Carney's plans will cost approximately $12.4 billion for Canada over a period of five years. The PBO estimates that the one-time payment could cause more than $3.1 billion outgo this year alone.
Recently, Carney visited China and then Qatar to sign bilateral agreements on trade and is now set to visit India to forge mutual trade alliances.
Last week, Trump issued fresh tariff threats (of 50%) on Canada-manufactured aircraft after reports surfaced that Canada's transportation regulator refused to certify the latest business jet models produced by Gulfstream of the U.S. which is a rival to Canada's Bombardier aircrafts.
The U.S. Federal Aviation Administration too stated that it expects other countries' aviation authorities to accept its certifications.
Canadian officials are engaged in talks with the U.S. federal government following Trump's threats.
On the domestic front, Carney is facing secessionist challenges. The push for a referendum on Alberta province's separation from Canada is slowly gaining steam with petition drives being held across the province in recent weeks.
Alberta Premier Danielle Smith stated that members of her caucus can sign any petition they want to include one pushing for a referendum on Alberta's independence from Canada.
Last week, Carney asked the U.S. administration to "respect Canada's sovereignty" after reports of U.S. officials meeting the separatist group from Alberta surfaced.
In the U.S., the partial shutdown of the U.S. Federal Government which began on January 30 is still in effect with the House Rules Committee set to vote today on the new funding bill to allow the resumption of operations.
Major sectors that gained in today's trading were Consumer Staples (2.72%), Consumer Discretionary (1.90%), Financials (1.72%), Healthcare (1.27%), and Industrials (1.19%).
Among the individual stocks, Alimentation Couche-Tard Inc (4.38%), Empire Company Ltd (4.23%), Loblaw CO (2.69%), Aritzia Inc (6.53%), and Goeasy Ltd (3.78%) were the prominent gainers.
Major sectors that lost in today's trading were Utilities (0.06%) and Energy (0.96%).
Among the individual stocks, Torumaline Oil Corp (4.58%), Advantage Oil & Gas Ltd (3.27%), Kelt Exploration Ltd (3.21%), Birchcliff Energy Ltd (2.73%), and Capital Power Corp (2.28%) were the notable losers.
5N Plus Inc (5.94%) and Tfi International Inc (4.98%) were among the prime market-moving stocks today.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
