TSX Starts 2025 Strong with Energy and Mining Stocks Leading the Charge
Canada’s TSX rides high as gold, oil, and materials stocks dominate the first trading day of 2025.

Canada's primary stock index, the S&P/TSX Composite, kicked off the new year on a high note, driven by surging gold and oil prices. With all 11 sectors in the green, the TSX rose 0.9% to 24,949.52 points, marking its highest level since mid-December.
Commodity-Linked Sectors Lead the Rally
The standout performers on Thursday were gold miners and material stocks, benefiting from rising commodity prices. A weaker U.S. dollar and easing monetary policies globally further bolstered the attractiveness of hard assets, positioning Canada’s resource-heavy market for growth.
Shiraz Ahmed, senior portfolio manager at Sartorial Wealth, noted the significance of Canada's trade ties with the United States. "Canada’s market is deeply influenced by the U.S. economy. A strong U.S. consumer typically means positive momentum for Canadian exports," Ahmed stated.
2024: A Stellar Year for the TSX
The TSX's 18% annual gain in 2024 represented its best performance since 2021. A global shift toward more accommodative monetary policies spurred optimism, fueling the market's upward trajectory. Analysts credit this rally to easing inflation fears and stronger-than-expected economic growth in key markets.
Economic Indicators Point to Momentum
Positive December data showed Canadian manufacturing activity growing at its fastest rate in nearly two years, signaling underlying economic resilience. This robust manufacturing PMI aligns with investor optimism as the country enters 2025 with strong fundamentals.
However, uncertainties loom, particularly around U.S. policy under President-elect Donald Trump. While Trump's pro-growth agenda of tax cuts and deregulation is anticipated to support markets, his proposed 25% tariff on Canadian imports casts a shadow over the cross-border trade relationship.
Investor Outlook: Optimism Meets Caution
Looking ahead, market watchers are eyeing key data releases, including employment figures from Canada and the U.S., for clues on monetary policy direction. The Federal Reserve's stance on rate cuts, coupled with potential policy shifts under the new U.S. administration, will likely shape the market narrative in the coming months.
Despite potential headwinds, Canada’s resource-rich sectors appear poised to maintain their upward trajectory, solidifying the TSX's position as a global leader in commodity-driven growth.
