04:23 PM EDT, 07/15/2024 (MT Newswires) -- The Toronto Stock Exchange's TSX Composite Index closed at a record high for a third-straight session on Monday, ending the day up 78.16 points to finish at 22,751.68 on strengthening resources issues.

The biggest gainers on the day are Battery Metals, up 1.9%, and Energy, up 1.7%. The only decliners on the day are Utilities and Base Metals, each down -0.9%.

West Texas Intermediate (WTI) crude oil closed lower in choppy trade on Monday with traders wary of increasing political risk following the weekend assassination attempt on Donald Trump. Weaker than expected second-quarter gross domestic product growth in China also weighed on oil. WTI crude closed down US$0.30 to settle at US$81.91 per barrel, while September Brent crude, the global benchmark, closed down US$0.18 to US$84.85.

Gold edged higher late afternoon on Monday, climbing to to a nine-week high as the dollar rose and treasury yields were mixed following the weekend assassination attempt. Gold for August delivery was last seen up US$6.00 to US$2,426.70 per ounce, the highest since May 21.

In the resources space, Foran Mining ( FMCXF ) closed up near 9% after announcing earlier Monday a series of brokered and non-brokered strategic investments for up to $315 Million, consisting of a brokered equity private placement for which the company has received indications of interest from several of its existing shareholders, including Fairfax Financial Holdings Limited ( FRFHF ) , and an equity private placement by Agnico Eagle Mines Limited ( AEM ) . The company also announced that a term sheet has been signed with a fund managed by Sprott Resource Lending Corp. (SII.TO) to upsize its existing US$150 million senior secured project credit facility to US$250 million, which will be used to advance construction at the McIlvenna Bay Project.

Foran shares closed up $0.32, or 8.4%, to $4.12.

Also on Monday, U.S. steelmaker Cleveland-Cliffs (CLF) agreed to acquire Stelco Holdings ( STZHF ) in a cash-and-stock deal valued at about US$2.5 billion, sending the Canadian steelmaker's shares up 73%. Stelco ( STZHF ) shares closed up $27.64, or 74%, to $65.00.

The TSX was also boosted by an increased prospect for a second rate cut in a row later this month following the release of a pair of surveys from the Bank of Canada.

Market watchers will likely fully price in a rate cut if they see an easing in Canadian inflation data tomorrow.

TD Bank looked at the key implications of today's BoC's Business Outlook Survey and Canadian Survey of Consumer Expectations for Q2 and noted both businesses and consumers remain pessimistic about future economic prospects. TD said the good news is that businesses are expecting some easing in wage and price pressures, while consumers are also adjusting their near-term inflation expectations. Nevertheless, the bank added, households continue to be concerned about elevated prices and high interest costs and are planning to reduce spending in the coming year.

"Weaker consumer demand remains widespread and is acutely felt by businesses, which are increasingly affected by competitive market pressures," TD noted.

According to TD, the overall tone of the surveys released a week before the BoC's next monetary policy decision, builds a solid case for another rate cut. It said: "In the absence of Q2 data from the National Income and Expenditure Accounts, the collective signals from indicators point to easing inflation expectations, moderating wage pressures and softening economic backdrop. Should June's CPI data (released on Tuesday) indicate an easing of inflationary pressures, the Bank of Canada will have more reason for another rate cut."

Markets are currently attaching a 78% probability to a July rate cut, the bank noted.

For RBC, the bottom line is that the Q2 BoC surveys broadly confirmed a softening economic backdrop. It noted the BoC's Governing Council is particularly focused on implications for inflation from the supply/demand balance in the economy, corporate pricing behavior, inflation expectations and wages, and all of those showed further improvement in the Q2 BOS.

TD added: "The data should help reinforce that interest rates no longer need to be as high as they are to get inflation Sustainable under control."

TD noted the June consumer prices index numbers tomorrow will still be watched closely for whether the BoC will be able to follow up the June interest rate cut with another next week. But absent a significant upside surprise, the BoC looks on rack to cut interest rates again, it said.