12:22 PM EDT, 03/31/2026 (MT Newswires) -- The Toronto Stock Exchange is up 512 points at midday with materials the best performer.

The sector is up 4.2%, boosted by higher gold prices which climbed after U.S. Federal Reserve Chair Jerome Powell said the central bank sees no need to raise interest rates despite higher energy prices.

On the economic front, focus was on today's Canada GDP data that showed the economy posted modest growth to start the year. Canadian GDP ticked higher by 0.1% month-on-month (m/m) in January slightly edging out Statistics Canada's advanced guidance and market expectations for a flat reading. Advanced guidance calls for an acceleration in February's real GDP growth to 0.2% m/m, led by a manufacturing rebound and continuing strength in mining and finance and insurance.

Canada's economy looks to be off to a "slightly better-than-expected" start in 2026 after a "lackluster" Q4 2025, says TD Bank.

TD adds with January's print and a flash estimate for February, Q1 2026 growth is "tracking in line with historical trend growth", a view it shares with the Bank of Canada. "It's worth noting that quarterly expenditure-based GDP growth has been particularly volatile due to sharp movements in trade and inventories, something not well captured in the monthly industry GDP accounts."

Tuesday's data shouldn't impact the BoC's next policy decision on April 29. Instead, the United States-Iran war is keeping the BoC more forward-looking, with the economic outlook highly dependent on how long and severe the conflict becomes, TD adds.

For now, TD maintains its view that the BoC has reached the end of its interest rate easing cycle.