TSX Rises on Energy and Mining Gains

The TSX Composite Index rose 0.4% to close at 33,955 on Wednesday, lifted by gains in energy and mining sectors and US President Trump's announcement of an indefinite Iran ceasefire extension. Despite tentative diplomatic optimism, oil prices climbed after gunfire attacks on container ships in the Strait of Hormuz. Energy producers advanced, with Canadian Natural up 0.9% and Suncor gaining 1.1%. Gold also rose, supporting miners as Agnico Eagle added 0.4% and Barrick advanced 0.6%. Banks traded lower amid rising oil prices, which renewed stagflation fears and lifted bond yields; Royal Bank of Canada shed 0.6% and TD Bank fell 0.8%. Also, Waste Connections reported better-than-expected Q1 results after the bell, shares closed down 1%. On the trade front, Canada's negotiator to the US said a July resolution of all North American trade pact issues was unlikely.

The S&P/TSX Composite Index rose nearly 1% to trade above 34,000 on Wednesday after President Trump extended the ceasefire with Iran indefinitely, agreeing to a request by mediators to hold off until Iranian leaders present a unified proposal. Although oil prices climbed following gunfire attacks on container ships in the Strait of Hormuz, the rally slowed, easing fears of stagflation and rate hikes, lifting pressure off banks. Bond yields fell, alleviating concerns over weak credit demand. BMO and the Royal Bank of Canada both edged up. Energy producers posted smaller gains as the oil rally cooled, with Canadian Natural and Suncor edging up. Gold rose on the ceasefire extension to support miners; Agnico Eagle and Barrick advanced over 1%, and WPM was up more than 2%. After the bell, Waste Connections (+0.1%) will report earnings. On the trade front, Canada's negotiator to the US said resolving all outstanding issues under the North American trade pact by July was unlikely.

Futures tracking the S&P/TSX Composite Index rose on Wednesday after President Trump extended the ceasefire with Iran indefinitely. Trump said the US had agreed to a request by Pakistani mediators to hold off on military action until Iranian leaders can present a unified proposal. Oil prices climbed following reports of gunfire attacks on container ships in the Strait of Hormuz. A more modest pace than recent rallies, easing fears of generalised stagflation and rate hikes and lifting pressure off financial stocks, while Canadian bond yields fell, further alleviating concerns over weak credit demand. Meanwhile, energy producers are set to post smaller gains as the oil rally cools, while gold rose on the ceasefire extension, supporting miners. In other news, Waste Connections will report earnings after the bell. On the trade front, Canada's chief negotiator to the US said resolving all outstanding issues under the North American trade pact by the July 1 review deadline was unlikely.