Canada's commodity-heavy main stock index rose on Monday, led by gains in mining shares, as investors weighed concerns over a possible U.S. government shutdown.
Toronto's S&P/TSX composite index (.GSPTSE) rose 0.55% to 29,924.93 points, building on Friday's gains as an in-line U.S. inflation print helped keep rate-cut bets alive.
Materials stocks (.GSPTTMT) rose 2.1% after gold prices broke past $3,800 an ounce to hit a record high.
"The Fed will continue to cut rates, the market believes that inflation will remain elevated in the U.S.," said Allan Small, senior investment advisor of the Allan Small Financial Group with iA Private Wealth.
"Those two things are causing the price of gold to continue its ride higher and that is the main driver and has been the main driver for the Toronto Stock Exchange all year."
Investors were also focused on the rising risk of a partial U.S. government shutdown as congressional Democrats and Republicans reached an impasse over how to continue funding the federal government.
A shutdown could affect financial markets by limiting the operations of financial regulators and delaying the publication of key economic data.
Pot firm Curaleaf Holdings (CURA.TO) jumped 24%, while Canopy Growth (WEED.TO), Aurora Cannabis (ACB.TO) and Cronos Group (CRON.TO) rose between 15% and 18.6%. An index of healthcare stocks (.GSPTTHC) rose 4.7%.
Conversely, the energy sub-index (.SPTTEN) dropped 1.4% as oil prices fell nearly 2%.
On the corporate front, Barrick Gold (ABX.TO) appointed veteran executive Mark Hill as interim president and CEO, sending its shares up 1.5%.
