The S&P/TSX Composite Index was little changed around the 36,000 level on Monday, as weakness in energy shares offset gains among the major banks. Crude prices fell on renewed hopes for diplomatic progress between the United States and Iran: Iranian President Masoud Pezeshkian is expected to attend the United Nations General Assembly in New York this week, and US President Trump has indicated he is open to a meeting.
Energy producers retreated, with Canadian Natural Resources and Suncor both losing nearly 2%. Mining stocks were also broadly lower as gold prices softened, dragging down WPM and Franco-Nevada by about 1%.
At the same time, bond yields eased, as the pause in the oil rally tempered concerns that rising energy costs could further fuel inflation. The move in yields offered some relief to credit-sensitive sectors. Canada’s major banks advanced close to 1%, including Royal Bank of Canada, TD Bank, Bank of Montreal, Scotiabank, and CIBC, helping to cap overall index losses.
Investors are now looking ahead to a speech by Bank of Canada Governor Tiff Macklem later in the day for signals on the central bank’s policy outlook.
