TSX Muted as US-Iran Talks Stall

The S&P/TSX Composite Index was little changed near the 35,000 mark on Friday as investors reacted to the suspension of US-Iran talks. The discussions, aimed at addressing Iran’s nuclear program following a recently signed memorandum of understanding, were delayed after regional tensions escalated and US Vice President JD Vance unexpectedly withdrew. At the same time, the Federal Reserve’s surprise hawkish shift earlier in the week continued to weigh on sentiment. Financial stocks traded mixed, with Brookfield falling nearly 1%, while RBC gained 0.6%. Gold prices extended losses, pressuring mining shares, with Agnico Eagle down more than 1%, Barrick losing over 1.5%, and WPM falling 2%. Energy stocks were mixed amid uncertainty over US-Iran diplomacy, with Canadian Natural up 1% and Cenovus gaining 0.5%, while Suncor Energy and Imperial Oil traded near flat.

Futures tracking Canada’s S&P/TSX Composite Index edged lower on Friday after US-Iran talks were suspended. The discussions, aimed at addressing Iran’s nuclear program following a recently signed memorandum of understanding, were delayed after the conflict between Israel and Lebanon reignited and US Vice President JD Vance unexpectedly withdrew. At the same time, pressure from the Federal Reserve’s surprise hawkish shift on Wednesday remained, adding pressure to financial stocks and the broader index. Gold prices extended losses, weighing on mining shares. On the macroeconomic front, attention also turned to trade diplomacy after reports that Canadian Prime Minister Mark Carney and his team held a series of trade discussions with US officials, while retail sales rose sharply.

Canada’s S&P/TSX Composite Index fell 0.4% to close at 34,969 on Wednesday as investors assessed a hawkish US Federal Reserve outlook and the signing of an interim peace deal between the US and Iran. The Federal Reserve kept interest rates unchanged, but its projections were viewed as more hawkish than expected, with roughly half of Federal Open Market Committee members anticipating at least one rate hike this year, raising concerns over higher borrowing costs. Financial stocks traded mixed, with Brookfield down 0.6% and CIBC falling 0.8%, while RBC rose 0.7% and TD Bank gained 0.7%. Mining stocks led losses as gold prices eased, with Barrick down 2.3%, Agnico Eagle losing 3.6%, and WPM falling 2.9%. The energy sector also weakened as oil prices declined after the US-Iran agreement aimed at ending the conflict and reopening the Strait of Hormuz. Canadian Natural fell 3%, while Suncor lost 1.5%.