The S&P/TSX Composite Index climbed 1% on Monday to a record close of 35,276 after the US and Iran announced a preliminary peace agreement aimed at ending the conflict. US President Donald Trump said the accord would halt hostilities and allow the reopening of the Strait of Hormuz.
Crude prices retreated following the news, easing fears that an energy-driven surge in inflation could force global central banks into a more hawkish stance. Bond yields also moved lower, tempering concerns over rising borrowing costs.
Financials outperformed, with Brookfield advancing 1.2%. A jump in gold prices underpinned a strong rally in mining shares: Agnico Eagle gained 5.6%, WPM rose 6.8%, and Barrick added 4.2%. By contrast, energy stocks sold off on the pullback in oil, with Canadian Natural falling 2.7% and Suncor down 3%.
Investors are now turning their attention to the Federal Reserve’s policy meeting, which concludes on Wednesday, with markets broadly expecting the central bank to leave interest rates unchanged.
