12:30 PM EDT, 09/30/2024 (MT Newswires) -- The Toronto Stock Exchange is down 55 points at midday, not helped by lower commodities prices.

The mining sector is the biggest decliner, down 1.5%.

Oil prices moved lower early on Monday as weak demand from China and concerns over rising supply offsets worries over a widening Middle East war as Israel steps up attacks on Lebanese militia groups

Gold traded lower for a second session, continuing to correct from a record high touched last week even as international tensions rise.

Natural gas edged down from a three-month high as Gulf of Mexico supply returned following Hurricane Helene's passage through the area and mild autumn temperatures limit cooling demand.

Scotiabank in its 'The Global Week Ahead' note, said market participants won't have much to consider by way of domestic developments for the rest of the week and will instead be driven by external developments, namely U.S. payrolls on Friday. Canada, it added, only faces updated PMIs for September on Tuesday and Thursday, plus the Ivey PMI on Friday -- none of which tend to be impactful to domestic markets.

Meanwhile, Craig Fehr over at Edward Jones in his 'Weekly Market Wrap' said markets have performed well in the lead up to this year's U.S. presidential election. It said stocks were higher again last week, with the S&P 500 notching the sixth weekly gain in the last seven, with an impressive gain of 11% just since early August. Meanwhile, the Toronto Stock Exchange gained more than 9% during that time, reaching all-time highs last week.

Fehr said: "This is not necessarily an indication that the financial markets are ambivalent to the U.S. political uncertainties that are brewing, but instead we think this is indicative of a market that has been more keenly focused on Fed policy, which is an area where we have received a bit more clarity of late."

According to Fehr, as we move past U.S. election day and the dust begins to settle on the headline and partisan reactions to the Oval Office's newest occupant, he thinks the market's focus will turn (return) to the following fundamental backdrop: one, an economy that, while shifting to a lower gear, is poised to advance at a decent speed ("or put more simply, is not headed for the recession ditch"); and two, central banks (the Bank of Canada and U.S. Federal Reserve) that, after two and a half years of stepping on the brake, are now easing policy; and three, corporate earnings that are accelerating, helping validate rising valuations and stock prices, as well as pave the path for the further broadening of this bull market.