• TSX ends up 0.6%, at 30,186.28
• Energy gains 2% as oil settles 5.6% higher
• Tech rises 2.1% as Shopify advances
• Retail sales grow by 1% in August

TORONTO, Oct 23 (Reuters) - Canada's commodity-linked main stock index rose on Thursday as a sharp increase in the price of oil boosted energy shares and investors shrugged off mixed domestic retail sales data.

The S&P/TSX composite index (.GSPTSE) , opens new tab ended up 203.30 points, or 0.6%, at 30,186.28, extending its recovery from an 11-day low on Tuesday.

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It was helped by gains for the heavily weighted financial, energy and materials sectors, as well as for Shopify (SHOP.TO) , opens new tab. The e-commerce company has the largest market capitalization of any company on the Toronto market.

"The three largest sectors and the largest company are all in positive territory which has supported the TSX's move higher," said Kevin Headland, co-chief investment strategist at Manulife Investments.

Canadian retail sales grew by 1% in August, matching expectations, as consumers spent more on new cars, at supermarkets and on clothing. An advance estimate for September was less upbeat, showing a decline of 0.7%.

"Retail sales came out positive but overall the (economic) landscape is not great," Headland said.

Investors are betting that a sluggish economy will prompt the Bank of Canada to ease interest rates further at a policy decision next Wednesday. Last month, the central bank lowered its benchmark rate to a three-year low of 2.50%.

The energy sector (.SPTTEN) , opens new tab advanced 2%, with shares of Cenovus Energy (CVE.TO) , opens new tab adding 3.1%. The price of oil settled 5.6% higher at $61.79 a barrel after the U.S. imposed sanctions on major Russian suppliers.

Renewed political risk bolstered safe-haven demand for gold . The precious metal was up 0.6%, while the materials group (.GSPTTMT) , opens new tab, which includes metal mining shares, gained 1%.

Financials rose 0.5% and technology ended 2.1% higher.

Air Canada (AC.TO) , opens new tab is betting on business travel to support an expansion of service from Toronto's downtown airport, with new routes to the U.S., in a boost for cross-border flying despite trade tensions between the two countries. Shares of the airline were down 0.2%.

(This story has been corrected to change the strategist's firm's name to Manulife Investments, instead of Manulife Investment Management, in paragraph 4)

https://www.reuters.com/business/tsx-futures-rise-commodity-gains-ahead-retail-sales-data-2025-10-23/