04:15 PM EDT, 07/02/2024 (MT Newswires) -- The Toronto Stock Exchange returned from the Canada Day holiday with a volatile session on Tuesday, with the S&P/TSX Composite Index closing up 78.01 points to end at 21,953.8. up around 145 points from day lows.

Energy, up 1.4%, was the day's the biggest sectoral gainer, followed by Information Technology, up 1.0%, while Telecoms down 1.7%, was the biggest decliner, followed by Battery Metals, which dipped by 0.5%.

West Texas Intermediate (WTI) crude oil closed lower on Tuesday, unable to stick early session gains on expectations for high summer demand, continuing violence in the Middle East and an early start to the hurricane season. WTI crude oil for August delivery closed down US$0.57 to settle at US$82.81 per barrel, after earlier touching US$87.46. September Brent crude, the global benchmark, closed down US$0.36 to US$86.24.

Gold traded lower mid-afternoon on Tuesday, falling for a second day despite a weakening dollar and lower treasury yields. Gold for August delivery was last seen down US$2.70 to US$2,336.20 per ounce.

Ahead of the next interest rate announcement and Monetary Policy Report from the Bank of Canada on July 24, all data releases are likely to be of interest to market watchers looking for clues as to whether or not rates here will be cut for a second straight month then.

To that end, RBC expects Canada's trade deficit tomorrow will have widened to $1.4 billion in May from a $1.1 billion shortfall in April with a 7% drop in oil prices weighing on exports. RBC said imports also likely declined with domestic demand remaining soft. It also noted machinery and equipment import volumes have been running near 4 below year-ago levels in a sign of sluggish business investment.

In contrast, BMO Economics in its morning note today said the merchandise trade balance looks to improve modestly to a $500 million deficit from $1.1 billion in the prior month. As it stands now, trade is on pace to add modestly to Q2 real GDP growth in Canada, BMO added.