Canadian Stocks Move Higher Amid Escalating U.S.-EU Conflict, Inflation Data

(RTTNews) - Amid increasing geopolitical tensions, Canadian stocks ticked higher on Monday as investors assessed both the impact of the U.S.-EU standoff over Greenland and Statistics Canada's report on inflation.

After opening just below the previous week's close, today the benchmark S&P/TSX Composite Index held the momentum gained earlier in the session throughout the day before settling at 33,090.96, up by 50.41 points (or 0.15%). Notably, this is a new record high for the index today.

Four of the 11 sectors posted gains today with Materials sector leading the pack.

The U.S. markets remained closed today on account of Martin Luther King Jr. Day.

U.S. President Donald Trump has hardened his stance in his pursuit for Greenland, an autonomous nation under the control of Denmark.

A majority of Greenland is inside the Arctic Circle and if the U.S. acquires it, it could serve as an outpost in the naval corridor between the Atlantic Ocean and the Arctic. Further, Greenland is rich in rare-earth minerals which are essential in the making of high-end digital components.

Leaders in both Denmark and Greenland have already rejected Trump's attempts for ownership stating that the "island is not for sale".

Trump added an economic dimension to the issue by threatening to impose 10% tariffs to Denmark, Finland, France, Germany, the Netherlands, Norway, Sweden, and the U.K. if they do not support the U.S. and may increase the levy to 25% by June 1 if the stalemate continues until then.

Trump reportedly informed Norway's Prime Minister Jonas Gahr Store that he is "no longer obliged to think purely of peace", rising concerns that Trump may adopt military maneuvers to achieve his goal.

An emergency meeting of the EU nations yesterday resulted in France asking the EU to activate "a trade bazooka" which could block some of U.S. access to marketplaces in the EU as a countermeasure.

Canadian Prime Minister Mark Carney has stated, "it is a serious situation, and we are concerned about the escalation" and added that Greenland is protected through NATO and Canada is committed to work with the allies.

Carney also stated that he will share his position with Trump if he meets him in Davos, Switzerland, at the World Economic Forum.

Reportedly, Carney is considering sending Canadian forces to Greenland for NATO military exercises.

Trump has already imposed 35% tariffs on Canadian exports to the U.S. and halted all trade talks with Canada.

Further, Trump hinted that the U.S. may withdraw from the Canada-United States-Mexico Agreement, a trade pact which is coming up for renewal in a few months.

To avoid the tariffs, Canadian exporters have been embracing the CUSMA route so far.

Analysts view that Carney's government is in for a tight ropewalk in negotiating with Trump over Greenland issue without frustrating him.

In Canada today, the data released by Statistics Canada showed that the headline inflation rate rose to 2.40% in December 2025 from 2.20% of the previous month, the highest in three months.

The previous year, Federal Government implemented a tax break which brought some prices down.

Consumer Price Index in Canada decreased 0.20% in December of 2025 over the previous month.

Annual core inflation eased to 2.80% in December 2025 from 2.90% of the previous month. Month-over-month, the core consumer prices fell by 0.40%.

CPI median cooled to 2.50% from 2.85 in November while CPI-Trim decreased to 2.70% from 2.90%.

Economists are of the view that the Bank of Canada may hold the rates in the near-term.

Major sectors that gained in today's trading were Materials (2.16%), Energy (0.53%), Consumer Staples (0.19%), and Utilities (0.12%).

Among the individual stocks, Iamgold Corp (9.73%), G Mining Ventures (5.47%), Silvercorp Metals Inc (5.21%), and Dundee Precious Metals Inc (4.80%).

Major sectors that lost in today's trading were Healthcare (0.30%), Real Estate (0.43%), Financials (0.49%), and IT (1.33%).

Among the individual stocks, Dye & Durham Ltd (10.13%), Bitfarms Ltd (5.58%), Open Text Corp (4.05%), and Blackline Safety Corp (2.99%) were the notable losers.