Canadian stock markets are entering a pivotal week of trading as investors balance a rise in commodity prices with looming central bank decisions and corporate earnings updates. Futures tracking the S&P/TSX Composite Index showed modest gains ahead of Tuesday’s session, as optimism around precious metals helped offset some broader market headwinds. Precious metals such as gold and silver have extended recent strength, providing support for mining stocks and contributing to a cautious but positive sentiment among traders.

One of the main drivers of sentiment this week is anticipation around interest rate decisions from both the U.S. Federal Reserve and the Bank of Canada. The Bank of Canada is widely expected to keep its policy rate unchanged, maintaining current levels as policymakers assess inflation trends and economic data. Similarly, markets expect the Federal Reserve to hold rates steady, reflecting a broader consensus that monetary policy will remain stable for now. These decisions are influencing positioning across Canadian equities, particularly in sectors sensitive to interest rates such as financials and real estate.

In commodity markets, the rally in precious metals has been notable. Rising gold and silver prices have boosted mining names on the TSX, drawing investor interest as safe-haven demand persists amid geopolitical uncertainty. While energy shares have faced some pressure from fluctuating oil prices, the overall strength in metals has helped broad commodity exposure maintain a positive tone in morning futures trading.

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Corporate news and earnings are also in focus. Traders watching Canadian Pacific Kansas City (CP.TO) are anticipating its upcoming earnings release, with guidance from management expected to influence near-term price action. Other sectors will likely see attention as companies begin to report fourth-quarter results and issue forward outlooks, adding fresh data for investors to digest.

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Overall, Tuesday’s TSX session is shaping up as a balance between macro drivers and individual stock catalysts. Commodity strength, monetary policy expectations, and company-specific earnings will each play roles in guiding market behaviour — making it a day for both broad thematic watching and selective stock focus.