The S&P/TSX Composite Index rose nearly 0.5% on Tuesday, trading above the 35,000 mark amid optimism over a potential US–Iran peace agreement. At the G7 summit, US President Donald Trump said negotiations with Iran had moved into a second stage. Crude prices fell as markets weighed the likelihood of renewed Iranian supply, easing concerns about energy-driven inflation and reducing the perceived risk of more hawkish central bank policy. Lower bond yields supported financials and the broader market, with RBC gaining more than 0.6%, TD Bank up 0.5%, and BMO advancing nearly 1%.
Stronger gold prices lifted mining shares, as Agnico Eagle and WPM climbed more than 1.5% and Barrick added over 1%. By contrast, weaker oil prices dragged on energy names, with Canadian Natural down 1.5% and Suncor off nearly 2%. On the domestic front, home sales rose 5.5% in May even as prices edged lower. Investors are now focused on Wednesday’s US Federal Reserve policy announcement, with markets broadly expecting interest rates to remain on hold.
