FX.co ★ TSX Rises as US Extends Iran Ceasefire Indefinitely

The S&P/TSX Composite Index climbed nearly 1% on Wednesday, moving back above the 34,000 mark after President Trump agreed to indefinitely extend the ceasefire with Iran. The decision came in response to mediators’ requests to delay further action until Iran’s leadership can present a unified proposal.

Oil prices initially rose following gunfire attacks on container ships in the Strait of Hormuz, but the rally later lost momentum. The pullback in crude eased worries about stagflation and additional interest rate hikes, relieving some pressure on financials. Government bond yields declined, helping to temper concerns over soft credit demand, and shares of BMO and Royal Bank of Canada both inched higher.

Energy producers registered more modest advances as the oil rally cooled, with Canadian Natural Resources and Suncor posting slight gains. Gold prices strengthened on news of the ceasefire extension, providing support to the mining sector: Agnico Eagle Mines and Barrick Gold each rose more than 1%, while Wheaton Precious Metals gained over 2%.

After the close, Waste Connections (up 0.1% in the session) is scheduled to report quarterly results. On the trade front, Canada’s chief negotiator to the United States cautioned that it is unlikely all remaining issues under the North American trade agreement will be resolved by July.