TORONTO, Jan 20, 2026, 10:42 (EST)
- After hitting a record close on Monday, the S&P/TSX Composite opened 0.44% lower on Tuesday
- Data showed Canada’s inflation in December climbed 2.4% year-on-year, surpassing forecasts.
- Gold’s surge pushed materials stocks higher, but technology lagged behind
Canada’s main stock index slipped at the open Tuesday as U.S. President Donald Trump revived tariff threats concerning Greenland. This came just a day after the market hit a fresh record high, buoyed by a gold-driven rally.
At 9:32 a.m. ET, the S&P/TSX Composite Index slipped 0.44% to 32,945.52, according to Reuters data. The benchmark had closed Monday up 0.2% at a fresh high of 33,090.96.
The swing is crucial as investors juggle two factors: an unexpected rise in Canadian inflation and renewed trade tensions driving funds toward “safe” havens like gold. The Bank of Canada is slated to announce its rate decision next week. Reuters
With U.S. markets closed for Martin Luther King Jr. Day, Monday’s trading saw lighter volume, leaving Toronto to move without the usual Wall Street momentum. Gold’s rally carried most of the weight.
“The strength in the TSX is largely driven by gold,” said Ian Chong, portfolio manager at First Avenue Investment Counsel, who dismissed the geopolitical risks chatter as “noise.” The February gold contract gained $81.30, settling at $4,676.70 an ounce. CityNews Halifax
Canada’s consumer price index climbed 2.4% year-on-year in December, boosted by a base effect from last year’s sales tax holiday, Statistics Canada reported. Economists had forecast a 2.2% rise.
Core inflation — which excludes the most erratic price changes — eased for the third month running, Reuters reported. Investors are now betting the Bank of Canada will keep its policy rate steady at 2.25% next week.
Chong shrugged off the spike in inflation. “I don’t think (the inflation reading) really moves the needle,” he said, describing price pressures as “relatively subdued.” CityNews Halifax
A separate Bank of Canada report showed business sentiment staying subdued but improving from its low in Q2 of last year, Canadian Press reported. Chong noted Ottawa seems centered on fiscal support and forging new trade ties to keep the economy afloat.
Monday saw the materials sector, which includes numerous metal miners, climb 2.2% as gold reached a new high. Technology stocks dropped 1.3%, and financials edged down 0.5%, according to Reuters.
“With markets hovering near all-time highs, occasional bouts of volatility are expected when risks surface,” said Josh Sheluk, portfolio manager at Verecan Capital Management. Reuters
But the boost from gold won’t last long. Chong warned that soft U.S. stock futures might drag down the main U.S. indexes once Wall Street opens, which “could translate into a weak Canadian market as well.” CityNews Halifax
The Canadian dollar climbed to 72.10 U.S. cents, rising from 71.88 cents on Friday. U.S. crude oil futures barely moved, with the March contract edging up nine cents to $59.43 a barrel.
