On April 16, 2025, Canadian capital markets opened with a bang. Today in the markets, the Toronto Stock Exchange S&P/TSX composite index surged up 118.68 points to an overall high of 24,186.61. Specific to our work in Canada, their market is on the upswing. At the same time, major U.S. stock indices are falling, underscoring the divergent trends in North American financial activities.
Gold prices suddenly shot through the roof. The June gold contract was up US$88.8 to US$3,329.20 an ounce. This spike in gold prices is a reflection of higher investor demand for safe-haven assets during times of heightened market uncertainty. Likewise, the May copper contract had a gain, climbing three cents to close at US$4.65 per pound. These movements indicate a renewal in the commodities sector, which has been fueled by a perfect storm of economic fundamentals.
In the commodities market, the June crude oil contract was up US$1.07, closing at US$61.82 in the barrel. This uptick is likely a sign of continuing global supply issues and increased demand as countries come roaring back from recent global lockdowns and other disruptions. Conversely, the May natural gas contract lost nine cents. It closed at US$3.24 per mmBTU, underscoring the volatile, mixed trends in the energy markets.
The Canadian dollar increased in strength compared to the U.S. dollar. It was worth 72.01 cents US, up from 71.77 cents US the previous day. The Canadian dollar—the loonie—has appreciated sharply. This increase is due to the outsize performance of Canadian commodities, which have traditionally tended to influence the strength of the C$ itself.
Unlike the Canadian markets, major U.S. equity indices were in retreat. The Dow Jones industrial average fell 82.69 points to finish at 40,286.27. At the same time, the benchmark S&P 500 Index dropped 53.53 points to close at 5,343.10. The tech-heavy Nasdaq composite fared even worse, falling 324.06 points at 16,499.11. These declines may be a barometer of investor trepidation in the face of stubborn high inflation, a hyperactive Fed, and escalating geopolitical machinations jostling markets.
The Canadian Press was first to report on these rapid developments. Second, it reminds us that the yo-yoing has been going on north and south of the border.
