Canadian stocks surged to a six-week high for a third straight session Tuesday, tracking rising global equity markets, with gains in the financial and resource sectors amid some upbeat macroeconomic data from Europe. Meanwhile, investors continued to await cues from the Federal Reserve meet on scaling down its bond-buying program. The market was closed yesterday on account of Victoria Day.
The outcome of the Federal Reserve meeting later this week is expected to end speculations over the quantitative easing program. Last week, speculations were rife that the Federal Reserve may pull back its monetary easing policy with San Francisco Federal Reserve President John Williams indicating the move possible as early as this summer, and even exit the program by the year end.
However, investor sentiments improved after St. Louis Fed President James Bullard in Frankfurt said he believed there would be no scale-down of the Fed's quantitative easing program, considering the low level of inflation.
The S&P/TSX Composite Index closed Tuesday at 12,742.43, up 129.38 points or 1.03 percent. The index touched an intraday high of 12,806.54 and a low of 12,613.05.
In some upbeat data from Europe, U.K. consumer price inflation slowed more-than-expected to a seven-month low in April on falling petrol and air fares, official data revealed Tuesday. Meanwhile, the German central bank in its monthly report said economic activity in the country is likely to improve markedly in the second quarter. The Bundesbank sees "catch-up effects" in the construction sector and expects noticeable increase in industrial new orders to underpin exports and investment.
Elsewhere, France's leading economic index strengthened throughout the first quarter, suggesting that economic activity may begin improving in the near term, the Conference Board said Tuesday.
The Global Gold Index surged 3.12 percent, although gold futures for June delivery shed $6.50 or 0.5 percent to close at $1,377.60 an ounce Tuesday on the Nymex.
The Capped Materials Index gained 1.63 percent, with Potash Corporation of Saskatchewan Inc.(POT.TO) dropping 1.76 percent.
Among gold stocks, Yamana Gold Inc. (YRI.TO) gained 1.87 percent, while Goldcorp Inc. (G.TO) added 2.90 percent. IAMGOLD Corp. (IMG.TO) surged 4.99 percent, while Kinross Gold Corp. (K.TO) soared 4.07 percent. Eldorado Gold Corp. (ELD.TO) added 3.62 percent, while Barrick Gold Corp. (ABX.TO) surged 4.25 percent.
The Diversified Metals & Mining Index added 1.25 percent, with First Quantum Minerals Ltd. (FM.TO) slipping 0.26 percent, Lundin Mining Corp. (LUN.TO) plunging6.33 percent, and Teck Resources (TCK.B.TO) up 1.82 percent. Meanwhile, Osisko Mining Corp. (OSK.TO) soared 7.89 percent.
The Energy Index gained 1.34 percent, although U.S. crude oil futures for July delivery dropped $0.75 or 0.8 percent to close at $96.18 a barrel Tuesday on the Nymex.
Among energy stocks, Suncor Energy Inc. (SU.TO) dropped 0.27 percent, while Canadian Natural Resources Limited (CNQ.TO) added 4.18 percent. Canadian Oil Sands Limited (COS.TO) moved up 1.17 percent, while Encana Corp. (ECA.TO) moved up 3.70 percent. Surge Energy Inc. (SGY.TO) gained 2.09 percent.
The Financial Index added 1.47 percent, with Manulife Financial Corp. (MFC.TO) up 0.25 percent and Bank of Montreal (BMO.TO) gathering 1.37 percent. TD Bank Group (TD.TO) gained 1.47 percent, while Royal Bank of Canada (RY.TO) jumped 2.72 percent. Bank of Nova Scotia (BNS.TO) added 1.67 percent.
Canaccord Financial Inc. (CF.TO) gained 4.53 percent after reporting a fourth-quarter profit of C$17.5 million or C$0.14 per share, compared to C$11.2 million or C$0.02 per share last year. Adjusted income was C$15.6 million or C$0.12 per share, compared to C$2.1 million or C$0.02 per share a year ago. Analysts expected earnings of C$0.09 per share for the quarter.
The Information Technology Index added 0.18 percent, with BlackBerry (BB.TO) up 0.73 percent.
The Capped Industrials Index shed 0.11 percent, with Bombardier Inc. (BBD.A.TO, BBD.B.TO) down 2.77 percent and Air Canada (AC.B.TO) down 4.52 percent.
In economic news, U.K. consumer price inflation slowed more-than-expected to a seven-month low in April on falling petrol and air fares, official data revealed Tuesday. Annual inflation dropped to 2.4 percent from 2.8 percent in March, while analysts expected inflation to ease 2.6 percent.
Germany's producer price inflation slowed for the third consecutive month in April, data from the Federal Statistical Office showed Tuesday. Producer prices rose only 0.1 percent in April from a year ago, following a 0.4 percent increase in March. This was the lowest annual rate since March 2010. Economists had forecast an increase of 0.2 percent for April. On a monthly basis, producer prices slipped a more-than-expected 0.2 percent, the same rate of decrease as in March. It was forecast to fall 0.1 percent.
Meanwhile, provisional estimates showed the Organization for Economic Cooperation and Development area expanded in the first quarter, with GDP rising 0.4 percent sequentially, after coming in flat a quarter ago.
Real GDP growth accelerated in Japan and the United States to 0.9 percent and 0.6 percent respectively, compared with 0.3 percent and 0.1 percent in the previous quarter. In the United Kingdom and Germany, GDP grew by 0.3 percent and 0.1 percent respectively, rebounding from the contractions of 0.3 percent and 0.7 percent in the previous quarter. The pace of contraction slowed in the euro area to -0.2 percent from -0.6 percent.
France's leading economic index strengthened throughout the first quarter, with the leading index rising 0.5 percent each in March and February. During the six-month span through March, the index gained 1.1 percent, as four of the seven components increased.
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Business News
June 05, 2026 16:18 ET A busy week for economic news flow saw a slew of reports being released that reflected the trends in the U.S. labor market. In Europe, economic growth and inflation data gained attention as the European Central Bank and Bank of England head for policy session later in the month. In Asia, the monetary policy session of the Indian central bank was in focus as the country, a major oil importer, reels under the pressures of a weaker rupee and rising inflation.