Canada's Stocks Soar to Record High Amid Earnings Optimism

Canada's main stock index, the S&P/TSX Composite Index, rose to a record high on Monday, driven by strong corporate earnings season prospects and technology shares. The index ended up 199.04 points, or 0.6%, at 35,568.14, surpassing its previous record closing high from last Wednesday.

Technology sector stocks led the gain, with Shopify Inc's shares rising 11.6%. Consumer discretionary stocks added 2.2% and financials rose 0.6%. The materials group increased by 0.4%, while gold prices climbed 0.7% as a pullback in oil prices eased inflation concerns.

U.S. crude oil futures fell 7.5% to $82.61 a barrel, weighing on energy stocks. The TSX energy sector declined 2.9%. Investors are awaiting the Federal Reserve's interest rate decision on Wednesday, with expectations of holding rates steady but traders seeing a risk of a hike.

Fed funds futures traders currently price in a 38% chance of a hike on Wednesday and an 83% probability of an increase by September. The Bank of England will announce its policy decision on Thursday, followed by the Bank of Japan on Friday.