TSX Futures Muted Amid Middle East Tensions

The S&P/TSX Composite Index was little changed near the 35,000 mark on Monday following military exchanges between the US and Iran. US and Iranian forces exchanged heavy missile and drone attacks over the weekend and into Monday, pushing oil prices higher on renewed concerns over crude shipments through the Strait of Hormuz. Bond yields rose as inflation concerns reinforced expectations that interest rates will remain higher for longer in North America. Financials traded near the flatline, with RBC and TD Bank edging up, while Scotiabank and CIBC inched lower. Meanwhile, gold prices fell on expectations of a hawkish Fed, weighing on mining stocks. Agnico Eagle, Barrick, and WPM shed nearly 2% each. In contrast, energy stocks gained on higher oil prices. Canadian Natural rose 2%, while Imperial Oil, Suncor, and Cenovus added about 3% each. Investors also await the BoC's policy decision on Wednesday, with the central bank widely expected to keep its key interest rate unchanged.

Futures tracking the S&P/TSX Composite Index were little changed on Monday as military exchanges between the US and Iran weighed on investor sentiment. US and Iranian forces exchanged heavy missile and drone attacks over the weekend and into Monday, pushing oil prices higher on renewed concerns over crude shipments through the Strait of Hormuz. Bond yields rose as inflation concerns reinforced expectations that interest rates will remain higher for longer in North America, pressuring financial stocks and the broader index. Meanwhile, gold prices fell on expectations of a hawkish Fed, weighing on mining stocks. Investors also await the Bank of Canada's policy decision on Wednesday, with the central bank widely expected to keep its key interest rate unchanged at 2.25%.

The S&P/TSX Composite Index gained 0.3% to close at 35,305, nearing its record high after a stronger-than-expected jobs report. Employment in Canada rose by 18,200 in June following an increase of 88,000 in May, while the unemployment rate unexpectedly fell to its lowest level in nearly two years. Financials traded higher, with RBC up 1%, TD Bank adding 0.7%, BMO gaining 1.1%, and Brookfield rising 1.6%. Retailers also posted gains, with ATD up 0.8% and Loblaw adding 1.2%. In the tech sector, Constellation Software gained 2.4% after SK Hynix raised $26.5 billion in its American depositary receipt offering, delivering the largest-ever US first-time stock sale by a foreign company. In contrast, mining stocks declined as gold prices moved lower. Agnico Eagle lost 1.6%, Barrick shed 0.6%, and Franco-Nevada fell 1.4%.