TSX Falls Amid Oil Rebound

The S&P/TSX Composite Index fell 0.9% to close at 35,490 as rising oil prices revived inflation concerns. Oil prices resumed their rally after US President Donald Trump rejected Iran’s latest proposal to reopen the Strait of Hormuz, renewing concerns that energy-driven inflation shocks could keep interest rates higher for longer. Yields moved higher, pressuring credit-sensitive stocks. Financials posted losses, with CIBC and National Bank down 1% each. Meanwhile, falling gold prices pressured mining shares, with Agnico Eagle tumbling 5.1%, Barrick falling 4.1%, and WPM losing 5%. In contrast, energy producers gained on the oil rebound, with Cenovus rising 0.7% and Suncor up 0.9%. On the data front, Canadian GDP data due Tuesday could offer cues on economic momentum and the Bank of Canada’s future policy path.

The S&P/TSX Composite Index fell nearly 1% to below 36,000 on Monday as rising oil prices revived inflation concerns. Oil prices resumed their rally after US President Donald Trump rejected Iran’s latest proposal to reopen the Strait of Hormuz, renewing concerns that energy-driven inflation shocks could keep interest rates higher for longer. Yields moved higher, pressuring credit-sensitive stocks. Financials posted losses, with CIBC and National Bank down more than 0.5%. Meanwhile, falling gold prices pressured mining shares, with Agnico Eagle tumbling more than 5%, while Barrick, WPM and Franco-Nevada shed about 4% each. Shopify (-3%) and Constellation Software (-1.5%) fell amid weakness in Wall Street tech stocks. In contrast, energy producers gained on the oil rebound, with Canadian Natural, Cenovus and Suncor up about 1%. On the data front, Canadian GDP data due Tuesday could offer cues on economic momentum and the Bank of Canada’s future policy path.

Futures tracking Canadian equities edged lower on Monday as rising oil prices revived inflation concerns. Oil prices resumed their rally after US President Donald Trump rejected Iran’s latest proposal to reopen the Strait of Hormuz, renewing concerns that energy-driven inflation shocks could keep interest rates higher for longer. Yields moved higher, putting pressure on credit-sensitive stocks. Meanwhile falling gold prices pressured mining shares. On the data front, Canadian GDP data due Tuesday could offer cues on economic momentum and the future policy path of the Bank of Canada.