TSX Falls as Middle East Peace Remains Uncertain

The S&P/TSX Composite Index fell nearly 0.5% to trade near 34,500 on Wednesday as investors monitored developments in the Middle East and assessed earnings from major banks. An unofficial draft of a US-Iran interim peace deal stated that maritime traffic through the Strait of Hormuz could return to normal within a month of the agreement being finalized, although it remains unclear whether the US has agreed to the terms. Oil prices fell, driving Canadian Natural and Suncor down 2%. Gold prices also declined, with Agnico Eagle and WPM both losing 1%. In finance, BMO rose 0.4% after posting a jump in profit driven by strong capital markets performance, while Scotiabank gained 1% on higher trading revenue amid volatile markets. NBC fell 2% ahead of results due later in the day, while RBC, TD Bank, and CIBC also traded lower before reporting on Thursday.

Futures tracking the S&P/TSX Composite Index were muted on Wednesday as investors assessed earnings from major banks while monitoring developments in the Middle East. Canada’s largest lenders have begun reporting quarterly results, with profits expected to rise despite trade tensions, the US-Iran conflict, and economic uncertainty. BMO posted a jump in profit, driven by solid performance in its capital markets division. Scotiabank also reported higher second-quarter profit, supported by strong trading revenue amid volatile markets. NBC is set to release results later in the day, while RBC, TD Bank, and CIBC are due to report on Thursday. Meanwhile, oil prices slipped as markets weighed a fragile US-Iran truce, with easing energy-driven inflation concerns weighing on bond yields, offering support to banks. Gold prices also declined, pressuring mining stocks. On the other hand, Silvercorp reported a jump in fourth-quarter revenue, helped by higher silver prices.

The S&P/TSX Composite Index fell 0.5% to close at 34,654 on Tuesday after reaching a record high in the previous session, as hopes for a resolution to the Middle East conflict faded following fresh US military strikes in Iran. The latest attacks renewed uncertainty over when the Strait of Hormuz could reopen, reviving concerns about prolonged inflation and higher-for-longer interest rates. Banks traded lower, with Royal Bank of Canada down 0.7% and TD Bank losing 0.7%. Canada’s largest lenders are set to report quarterly earnings this week, with profits expected to rise despite trade tensions, the Middle East conflict, and broader macroeconomic uncertainty, though risks tied to weaker consumer finances and a softer housing market remain elevated. Heavyweight mining stocks also declined as gold prices slipped, with Barrick down 0.9%, Wheaton Precious Metals losing 2.4%, and Agnico Eagle shedding 1.7%.