The Toronto Stock Exchange closed higher on Tuesday, rising for the ninth time in the past 10 ten sessions, with investors possibly getting fresh encouragement from news the Canadian federal government will later this month provide a spring economic update that is expected to outline its plans for overcoming high oil prices due to the Iran war, and lingering trade disputes with the United States.
The S&P/TSX Composite Index rose 223.12 points, or 0.65% to 34,102.36, leaving it less than 500 points from its March 2 record close of 34,541.27. Most sectors were higher, led by Info Tech, up 2.75%, for the second session in a row. Energy, down 2.4%, was the biggest loser as the oil prices dropped.
On the political and economics front, Finance Minister Francois-Philippe Champagne told Parliament on Tuesday the federal government will table its spring economic update on April 28, marking the first anniversary of the Liberals' general election win.
CTV News noted it will be Prime Minister Mark Carney's first since his cabinet flipped the release schedule for its budgets and fiscal updates.
The federal government has already started to flag some of the details likely to be at the heart of the economic update. CTV News noted the government is set to temporarily suspend the federal fuel excise tax on gas and diesel starting next week. Carney made the announcement in Ottawa on Tuesday, just hours after his government secured a majority through three byelection wins and some recent floor crossings involving Members of Parliament from other parties.
CTV News noted the tax suspension is expected to reduce the cost of gas by 10 cents per liter on regular gas, and four cents on diesel. The suspension will come into effect on April 20 and last until Sept. 7, and comes as global oil prices remain volatile amid U.S.-Iran tensions.
Speaking to reporters following the announcement on the federal fuel excise tax, Carney signaled the spring economic update will include some restructuring of already announced measures. "We're putting in place a series of measures. Some will have short-term payoffs. Many will have payoffs in a few years," Carney said. "The bigger projects, the bigger initiatives, we have to change fundamentally our economy to be stronger, more independent, more prosperous, but we want to make sure that those benefit all Canadians."
"In (the spring update), you'll see more emphasis on taking where we're going with the economy and making sure that it benefits all Canadians," he added.
Still on economics, National Bank Canada said Canada has preserved a fiscal edge, despite moves to protect the economy as highlighted in the latest International Monetary Fund update.
The IMF on Tuesday trimmed its 2026 forecast for Canada's gross domestic product growth by 0.1 percentage points to 1.5%, while keeping the estimate at 1.9% for next year. The IMF published its latest World Economic Outlook on Tuesday. Canada's GDP expanded 1.7% in 2025.
National Bank economist Ethan Currie and Warren Lovely said while Canada's growth outlook is largely unchanged, they noted governments have moved to protect and defend a trade-sensitive economy. "That extra budgetary red ink is captured in this latest MF forecast. Net borrowing is seen as more substantive yet again, which is directionally inconsistent with other G7 countries, who saw improvements relative to the Oct-26 IMF report," the National Bank duo noted.
But that, they said, is not to say Canada does not remain in a favorable fiscal standing. They added: "The budget deficit, while loftier following the pandemic, remains contained relative to other jurisdictions, particularly the U.S., which isn't expected to see the same level of consolidation in years to come. Meantime, Canada's serious net debt edge, brought on by plentiful financial assets at the government/public pension level, is only set to build from here."
Of commodities today, West Texas intermediate crude oil closed sharply lower after U.S. President Trump said further talks with Iran in Pakistan "could be happening over next two days", while the International Energy Agency said it expects oil demand to fall this year on a lack of supply as the Strait of Hormuz remains essentially closed. WTI crude oil for May delivery was closed down $7.80 to settle at US$91.28 per barrel, while June Brent oil was down US$4.58 to US$94.78.
Gold traded higher Tuesday as the dollar fell after the United States reported U.S. wholesale price inflation rose less than expected last month. Gold for May delivery was last seen up $82.90 to US$4,850.30 per ounce.