Stocks in Canada Hit 4-week Low

Canada’s S&P/TSX Composite Index staged a late-session recovery on Monday to close 0.3% higher at 33,189 as de-escalating geopolitical tensions dismantled the stagflationary fears that had initially pressured North American markets. After a volatile morning where energy prices spiked, the index found a steady floor as West Texas Intermediate crude retreated below $90 per barrel following optimistic comments regarding the security of the Strait of Hormuz. Technology and materials sectors led the turnaround with Shopify advancing 2.6% and Agnico Eagle Mines jumping 1.8%, while Cameco surged 5.9% as investors refocused on long-term resource fundamentals. Despite the broader rebound, the financial sector remained a pocket of weakness as Scotiabank and CIBC fell 1.8% each, amid lingering caution over the domestic interest rate path.

Canada's S&P/TSX Composite Index tumbled over 1% to below the 32,700 mark on Monday, as the escalating conflict in the Middle East fueled a sharp rotation out of risk-sensitive sectors. The tenth day of the US-Israel war with Iran drove Brent crude prices higher, providing a localized boost to energy heavyweights like Suncor Energy (2.3%), Canadian Natural Resources (1.9%), and Cenovus (3.4%). However, these gains were insufficient to offset broad-based losses across the financial and mining sectors as investors gravitated toward the US dollar as the primary safe haven. Major financial institutions faced notable pressure, with the Bank of Nova Scotia falling 2.6% and CIBC dropping 2.4%, as rising bond yields and the threat of global stagflation clouded the outlook for credit demand. Mining heavyweights also retreated sharply, led by a 4.4% slide in Wheaton Precious Metals and a 4.2% decline in Teck Resources, as the stronger greenback weighed on dollar-denominated commodity valuations.

TSX decreased to 32442.00 Index Points, the lowest since February 2026. Over the past 4 weeks, Canada Stock Market Index (TSX) lost 2.42%, and in the last 12 months, it increased 33.11%.