TSX Down Ahead of BoC Meeting

The S&P/TSX Composite declined 0.7% to close at 33,584 on Tuesday, weighed down by stalled US-Iran negotiations. With the Strait of Hormuz effectively closed, fears of an energy shock sparking global inflation persist. Although the Bank of Canada and US Fed are expected to hold rates on Wednesday, investors worry that energy-driven stagflation could force a more hawkish stance later this year. Financials traded mixed, with Brookfield down 1.2% while the Royal Bank of Canada gained 1%. The mining sector posted sharp losses amid falling gold prices, with Agnico Eagle down 4.2% and WPM down 4.9%. In contrast, Canadian Natural added nearly 3.3% on rising oil quotes, while Suncor gained 1.4%. Celestica plunged 14.5% despite having reported strong results in Q1 2026, as techs have fallen on weak OpenAI results.

The S&P/TSX Composite Index traded muted below 34,000 on Tuesday, weighed down by stalled US-Iran negotiations. With the Strait of Hormuz effectively closed, fears of an energy shock sparking global inflation persist. Although the Bank of Canada and US Fed are expected to hold rates on Wednesday, investors worry that energy-driven stagflation could force a more hawkish stance later this year. Banks traded mixed, with BMO and the Canadian Imperial Bank of Commerce edging lower, while TD and the Royal Bank of Canada gained about 0.5%. Meanwhile, Agnico Eagle, Barrick Gold, and Wheaton Precious Metals fell 2.6%, 3.4%, and 3.3% respectively on lower gold prices. In contrast, Canadian Natural added nearly 2% on rising oil quotes, while Suncor gained 1.3%. Celestica plunged over 11% despite reporting strong Q1 2026 results. Fairfax Financial edged lower ahead of its earnings release.

Futures tracking the S&P/TSX Composite Index fell on Tuesday, weighed down by stalled US-Iran negotiations and concerns over OpenAI's performance. With the Strait of Hormuz effectively closed, fears of an energy shock sparking global inflation. Although the Bank of Canada and US Fed are expected to hold rates on Wednesday, investors worry that energy-driven stagflation could force a more hawkish stance later this year, pressuring major banks and the broader index. OpenAI's recent misses in user growth and revenue also weighed on tech peers like Shopify. Miners are set to open lower as gold prices declined. In contrast, BMO upgraded Celestica's target price following an EPS beat, and Fairfax Financial is scheduled to report results today.