The S&P/TSX Composite Index climbed about 0.6% on Monday, moving back above the 31,500 level, as stagflation worries eased following Donald Trump’s signal of a five-day delay in potential strikes on Iranian power plants. The pause in the four-week Middle East conflict has helped pull back global bond yields and offered support to credit-sensitive sectors.
Financial heavyweights led the rebound, with Royal Bank of Canada and TD Bank each advancing more than 1% as expectations of energy-driven inflation moderated. In contrast, energy producers such as Canadian Natural Resources and Suncor fell more than 2.5%, reflecting a fading geopolitical risk premium in oil markets.
Mining shares delivered a mixed performance: Teck Resources rallied nearly 5%, while Agnico Eagle edged lower despite the generally positive tone across the broader market.
