TSX Gains After Declines#
Canada’s main stock exchange, the S&P/TSX Composite index, ended higher on Monday, recovering from three consecutive sessions of decline last week. The index gained 1.03%, marking its largest daily increase since February 26, and closed at 32,876.65 points.
U.S. Market Performance#
U.S. stocks also saw gains at the market open, with investors showing some renewed risk appetite. The Dow Jones Industrial Average rose by 0.83%, the S&P 500 climbed 1.01%, and the Nasdaq Composite increased by 1.22%. Last week, these averages had fallen due to rising oil prices driven by concerns about global supply issues.
Oil Prices and Global Supply Concerns#
Oil prices had surged last week due to worries over supply constraints, particularly in the Strait of Hormuz, a crucial waterway for global oil transport. The ongoing conflict in the region has restricted energy flows, raising concerns about the global economy. Although the U.S. has attempted to alleviate these fears by easing some sanctions on Russian oil, crude prices remain elevated compared to pre-conflict levels.
Recent Developments in Oil Markets#
On Monday, Brent crude prices fell from earlier gains but stayed just above $100 per barrel. U.S. West Texas Intermediate crude futures also dropped by 4.4%, settling at $92.62 per barrel. U.S. President Donald Trump has called for international cooperation to reopen the Strait of Hormuz, emphasizing the importance of NATO allies in this effort. Meanwhile, the European Union is exploring options to resume shipping through the strait, which has been largely blocked, impacting energy supplies for major economies in Europe and Asia.