The TSX slipped back below 34,000 on Monday as hopes for a Middle East ceasefire faded following the collapse of weekend US–Iran talks and Washington’s announcement of a blockade along Iran’s coast. Oil prices spiked on renewed supply-shock concerns, stoking inflation fears, pushing bond yields higher, and reviving worries about weaker credit demand and the risk of further rate hikes, which weighed on financials. Royal Bank of Canada, TD Bank, and Bank of Montreal each fell about 1%.
Gold retreated to a near one-week low as inflation worries curbed expectations for interest rate cuts by major central banks, pressuring mining stocks. Agnico Eagle declined more than 1%, while Barrick Gold and Wheaton Precious Metals each lost close to 1%.
In contrast, energy producers advanced on the back of higher crude prices. Canadian Natural Resources and Tourmaline Oil both gained around 2%, while Suncor Energy rose more than 2%.
Elsewhere, GFL Environmental dropped nearly 7% as it moved closer to a roughly C$6 billion deal to acquire Secure Waste Infrastructure.
