FX.co ★ TSX Muted on Iran Stalemate

The S&P/TSX Composite Index traded little changed below the 34,000 mark on Tuesday, pressured by stalled US-Iran negotiations. With the Strait of Hormuz effectively closed, concerns persist that an energy shock could trigger a new wave of global inflation. While the Bank of Canada and the US Federal Reserve are widely expected to keep interest rates on hold on Wednesday, investors remain wary that energy-driven stagflation could prompt a more hawkish policy stance later this year. Bank stocks were mixed, with Bank of Montreal and Canadian Imperial Bank of Commerce edging lower, while Toronto-Dominion Bank and Royal Bank of Canada each gained about 0.5%. In the materials sector, Agnico Eagle, Barrick Gold, and Wheaton Precious Metals fell 2.6%, 3.4%, and 3.3%, respectively, tracking weaker gold prices. By contrast, Canadian Natural Resources rose nearly 2% on higher oil prices, and Suncor Energy advanced 1.3%. Celestica slumped more than 11% despite posting strong first-quarter 2026 results, while Fairfax Financial dipped slightly ahead of its earnings release.