12:11 PM EDT, 10/21/2024 (MT Newswires) -- The Toronto Stock Exchange is down 91 points at midday, with the energy sector (+0.3%), the sole gainer.

The biggest decliners are miners (-1.7%) and info tech (-0.7%).

Oil prices rose early on Monday after China lowered interest rates as the No.1 oil importer looks to stimulate its flagging economy.

Gold traded at a fresh record high despite a rising dollar and higher treasury yields as the metal benefits from easing interest rates and safe-haven buying amid Middle East violence and the approaching U.S. election.

Natural gas prices rose, rebounding from a 9.2% drop last week as demand remains light amid mild autumn weather.

BMO Economics in its morning note, said equity markets added to their gains last week on the back of some firm U.S. economic data and the start of the third quarter earnings season. The TSX added 1.4%, with dividend-paying stocks still feasting on the prospect of "more aggressive" BoC rate cuts. Indeed, a softer-than-expected CPI report saw Canadian headline inflation ebb to 1.6% year over year, the slowest pace since February 2021 and below the BoC's target. BMO said: "While this will likely prove short-lived (higher gas prices should lift headline inflation in next month's report), it's pretty clear that inflation is back where the BoC wants it to be. As such, we expect a 50 bp rate cut at Wednesday's meeting, which will take the BoC on a quicker path back to more neutral interest rates."

All told, BMO said, weaker growth and inflation have set the table for a 50 bp rate cut from the Bank of Canada. However, it added, that won't necessarily be the pace going forward, especially once policy rates get closer to neutral.

BMO noted we'll also get data on retail sales for August (Friday), and the preliminary manufacturing data for September (Friday).

In terms of bigger picture commentary on North American stock markets, Craig Fehr at Edward Jones in a "Weekly Market Wrap' noted the stock market continues its "impressive performance" in 2024. He said if the S&P 500 can maintain the momentum, this would give it a second consecutive year with a return above 20%, something that has occurred in only five periods over the last 75 years. "While only one of those periods saw that level of return again the following year, history does show that the market often continued to move higher, just not at that same pace," he added.

Fehr said current conditions are "hardly devoid of risks", but added the present setup of a growing economy, more friendly central bank policy, and an uptrend in corporate profits is, in the view of Edward Jones, supportive for further gains ahead, "just perhaps not as smooth or as strong as we've enjoyed of late."