The S&P/TSX Composite Index inched higher on Monday, trading near the 36,000 level, supported by gains in major bank shares. Oil prices declined amid optimism over potential diplomatic progress between the United States and Iran. Iranian President Masoud Pezeshkian is expected to attend the UN General Assembly this week, and US President Trump indicated he would be open to meeting him.
Bond yields eased as the pullback in oil prices tempered concerns about broader inflationary pressures from energy costs, providing a lift to interest rate–sensitive stocks. Financials outperformed, with Royal Bank of Canada, TD Bank, Bank of Montreal, Scotiabank, and CIBC each advancing close to 1.5%.
In a speech, Bank of Canada Governor Tiff Macklem stressed that monetary policy cannot undo tariffs or directly influence gasoline prices. He underscored that the central bank’s role is to evaluate whether such shocks will have persistent effects on inflation and economic growth.
Energy stocks declined alongside weaker crude prices, with Canadian Natural Resources and Suncor falling more than 2%. Mining shares were mostly lower as gold prices softened, and Wheaton Precious Metals (WPM) lost about 2%.
