TSX Today: Why Canadian Stocks Could Fall on Monday, December 4

The commodity market’s heavy losses in early trading could drive the main TSX index downward at the open today.

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The Canadian stock market started the new month on a solid note after surging by 7.2% in November, as weaker-than-expected U.S. manufacturing numbers kept hopes alive that the Federal Reserve will soon pause interest rate hikes. The S&P/TSX Composite Index inched up by 217 points, or 1.1%, on Friday to settle at 20,453 — its highest closing level since September 18.

While all main market sectors ended the session in the green territory, the TSX index rally was primarily driven by robust gains in healthcare, real estate, consumer cyclicals, and technology stocks.

Top TSX Composite movers and active stocks

Ero Copper, Torex Gold Resources, Hudbay Minerals, and Tilray Brands were the top-performing TSX stocks in the first trading session of December, as they inched up by more than 6% each.

Shares of Lundin Mining (TSX:LUN) climbed up by 4.3% to $9.80 per share a day after the company announced its updated share capital and voting rights. In a press release, the Toronto-headquartered base metals miner told investors that at the end of November, its total number of issued and outstanding shares “has increased by 75,879 to 773,494,324 common shares with voting rights” due to “the exercise of employee stock options or the vesting of employee share units.”

In another key development on December 4, Lundin Mining announced the completion of its chief executive officer (CEO) transition process, with Jack Lundin officially assuming the CEO role. The transition will see Jack joining the board of directors on January 1, 2024, while Mr. Rockandel will continue serving on the board until the end of 2023. This news could make LUN stock more volatile today, as it currently trades with nearly 18% year-to-date gains.

In contrast, shares of International Petroleum and Energy Fuels slipped by at least 3.4% each, making them the bottom performers on the Toronto Stock Exchange.

Based on their daily trade volume, Suncor Energy, Canadian Natural Resources, Great-West Lifeco, Telus, and Manulife Financial were the most active stocks on the exchange.

TSX today

After consistently rallying for several days, metals prices across the board saw big declines early Monday morning. At the same time, crude oil and natural gas prices continued to extend last week’s losses. Given these negative signals, I expect the commodity-heavy main TSX index to open sharply lower today.

While no major economic releases are due, Canadian investors may want to remain cautious in the next few sessions, as they await the Bank of Canada’s key interest rate decision and the U.S. labour market data scheduled for later this week.

Market movers on the TSX today

This article represents the opinion of the writer, who may disagree with the “official” recommendation position of a Motley Fool premium service or advisor. We’re Motley! Questioning an investing thesis — even one of our own — helps us all think critically about investing and make decisions that help us become smarter, happier, and richer, so we sometimes publish articles that may not be in line with recommendations, rankings or other content.

The Motley Fool recommends Canadian Natural Resources, International Petroleum, TELUS, and Tilray Brands. The Motley Fool has a disclosure policy. Fool contributor Jitendra Parashar has no position in any of the stocks mentioned.

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