The S&P/TSX Composite Index was little changed on Tuesday, hovering near the 35,000 level as investors weighed stronger-than-expected GDP data against ongoing geopolitical tensions in the Middle East. An advance estimate for May pointed to a 0.1% month-over-month expansion, indicating that economic growth may be stabilizing.
Canada’s economy grew more than forecast in April, rebounding from a mild contraction in March and easing worries that a tariff-driven slowdown was gaining momentum. The data bolstered sentiment by improving the outlook for corporate earnings and tempering downside risks.
In geopolitical developments, senior US officials in Doha stated they would not hold direct talks with Iran, raising doubts about efforts to resolve the conflict and fully reopen the Strait of Hormuz. Instead, technical discussions will proceed this week on topics including regional security.
Oil prices inched higher but remained below recent highs. Financials and energy names advanced, with Royal Bank of Canada and Canadian Natural Resources each gaining about 1%. Mining stocks retreated, led by a 1.5% decline in Agnico Eagle Mines.
