The S&P/TSX Composite Index edged higher on Tuesday, moving above the 34,000 mark to its highest level since early March. The advance followed reports that US-Iran negotiations could resume in Islamabad as early as this weekend. Crude oil prices declined on hopes that a revival of talks could ease conflict-related supply disruptions, alleviating stagflation and interest rate concerns and, in turn, reducing pressure on banking shares. BMO, Royal Bank of Canada, and Bank of Nova Scotia all traded close to unchanged.
Gold prices firmed, supported by a weaker US dollar, which boosted mining stocks. Wheaton Precious Metals (WPM) gained nearly 2%, while Agnico Eagle advanced more than 1%. In contrast, the pullback in oil prices weighed on energy producers, with Canadian Natural Resources slipping more than 2% and Suncor Energy falling over 1%.
In political developments, Prime Minister Mark Carney secured a parliamentary majority for his Liberal government on Monday. He said the strengthened mandate would better position him to confront the trade war launched by US President Trump.
