TSX Falls as Miners and Energy Losses Weigh

The S&P/TSX Composite Index fell 0.2% to close at 35,212 on Monday, pressured by declines in mining and energy stocks. Gold miners led losses as a stronger dollar weighed on bullion prices. Agnico Eagle fell 1.6%, Barrick lost 2.4%, WPM retreated 2.6%, and Franco-Nevada dropped 3.4%. Energy shares also traded lower after oil prices fell further below pre-conflict levels as OPEC+ agreed to raise output targets again from August, while exports through the Strait of Hormuz continued to recover, improving the global supply outlook. Canadian Natural fell 1.3%, Imperial Oil lost 1.6%, and Cenovus shed 1.9%. In contrast, financials outperformed as lower oil prices pushed bond yields lower and reinforced expectations that the BoC will keep interest rates on hold. RBC gained 1.7%, TD Bank rose 0.8%, BMO added 1.2%, and Brookfield advanced 1.4%.

The S&P/TSX Composite Index fell 0.5% do below 35,150 on Monday amid pressure from gold miners and tech. Agnico Eagle and Barrick fell about 2%, while WPM lost more than 2.5% as a strong dollar pressed gold prices. Meanwhile, oil prices fell further below pre-conflict levels after OPEC+ agreed to raise output targets again from August, while exports through the Strait of Hormuz continued to recover, improving global supply prospects. These developments supported the view that the BoC a will keep interest rates on hold, pushing bond yields lower and easing concerns over borrowing costs. Financial stocks outperformed, with RBC rising 1%, TD Bank gaining more than 0.5%, and BMO advancing over 1%.

Futures tracking the S&P/TSX Composite Index edged higher on Monday as lower oil prices eased inflation concerns. Crude prices fell further below pre-conflict levels after OPEC+ agreed to raise output targets again from August, while exports through the Strait of Hormuz continued to recover, improving global supply prospects. Meanwhile, expectations for a Federal Reserve rate hike this year eased following last week's weaker-than-expected US jobs report, shifting the perception to a cooling labor market. These developments supported expectations that the Bank of Canada will keep interest rates on hold, pushing Canadian bond yields lower and easing concerns over borrowing costs, which supported financial stocks and the broader market. The BoC's next policy decision is due on July 15. Meanwhile, gold prices slipped as the US dollar steadied after last week's decline, weighing on mining shares.