Plummeting energy commodities provided breathing room for rate-sensitive and resource-heavy components, despite the domestic energy sector tumbling 4.8%. Sector gains were widespread, led by strong advances in real estate, industrials, and materials as gold staged a recovery. Additionally, Canada's 10-year bond yield slipped to 3.750% after hitting a two-month low earlier in the day. These market tailwinds successfully overshadowed data showing Canadian factory activity contracted in October under pressure from tariffs and inflation.
Key points
Cheaper crude prices relieved inflation anxieties and spurred broad-based equity buying o…: Cheaper crude prices relieved inflation anxieties and spurred broad-based equity buying outside the declining energy sector.
Falling bond yields accompanied the stock rally as Canada's 10-year yield fell 4.9 basis…: Falling bond yields accompanied the stock rally as Canada's 10-year yield fell 4.9 basis points to 3.750%.
Investor optimism persisted even as domestic manufacturing contracted in October for the…: Investor optimism persisted even as domestic manufacturing contracted in October for the first time this year.
Sources checked by our analysis pipeline: 1
(Updates at market close)
By Anand Gopal R and Fergal Smith
TORONTO, Nov 2 (Reuters) - Canada's main stock index rallied on Monday as a sharp drop in oil prices boosted investor sentiment at the start of a new month, with industrial and metal mining shares leading broad-based gains.
The S&P/TSX Composite Index ended up 181.06 points, or 0.5%, at 35,801.09, recouping some of Friday's steep decline.
* "It's more repositioning for the new month, along with support from oil and developments in the Middle East," said Michael Dehal, a senior portfolio manager at Dehal Investment Partners at Raymond James.
* US crude oil futures settled 7.4% lower at $96.46 a barrel as talks between Iranian and Qatari officials lifted hopes for an end to the US-Israeli war with Iran and stabilization of Middle East crude supply.
* The price of gold rebounded from a one-year low hit in the previous session, rising 1.8%, as the pullback in oil prices tempered inflation worries.
* The materials group, which includes metal mining shares, rose 2.3% after tumbling 13.1% in October.
Blockchain data reveals that perpetrators of the massive October 29 cyberattack conceded roughly $119 million via unfavorable slippage during their escape attempts. Market participants capable of navigating frozen exchange rails exploited dramatic cross-venue discrepancies caused by the attackers' desperate buying. This rapid capital flight warped decentralized liquidity pools before centralized authorities managed to halt the illicit token flows.
Pyongyang officially rejected accusations linking state-sponsored actors to the record-breaking exchange compromise, branding Washington's public attribution a politically motivated fabrication. The friction follows federal assertions tying the breach to a known regime cyber unit that regularly funds state initiatives through illicit operations. The development underscores escalating friction between global investigators and persistent state-backed hacking outfits targeting modern financial infrastructure.
Persistent pressure from climbing household debt and elevated global energy costs continues to challenge policymakers in Asia's fourth-largest economy. Despite the latest cooling in consumer prices, the reading remains firmly detached from the central bank's medium-term mandate. Consequently, monetary authorities are expected to push forward with policy tightening in upcoming meetings to anchor broader economic expectations.