The S&P/TSX Composite Index climbed about 1% on Thursday to trade above 33,500, supported by a pullback in oil prices. Crude briefly rebounded on reports of a potential US military strike on Iran, but those gains quickly unwound. Global oil benchmarks retreated after surpassing $126 per barrel, although prices remain elevated amid ongoing inflation concerns. Even so, the decline in oil prices helped ease pressure on the banking sector and the broader market. BMO and TD each rose nearly 1%, while Royal Bank of Canada advanced 0.5%.
At the same time, gold prices moved higher on a weaker US dollar, lifting mining stocks. Agnico Eagle gained more than 2%, and Barrick added over 1.5%. In monetary policy developments, both the Bank of Canada and the US Federal Reserve left interest rates unchanged on Wednesday, in line with expectations. On the data front, industry-based estimates of real GDP indicate that the Canadian economy expanded by 0.4% in the first quarter of 2026.
