FX.co ★ TSX Nears Flatline Following US-Iran Truce

The S&P/TSX Composite Index hovered around the 35,000 level on Monday, trading largely flat as investors weighed the temporary truce between the US and Iran. Oil prices held near pre-conflict levels after both sides agreed to suspend mutual attacks ahead of this week’s peace talks, following renewed clashes over the weekend. The softer oil prices helped ease worries about energy-driven inflation.

Financials outperformed, with major banks moving higher as Royal Bank of Canada and Toronto-Dominion Bank each gained more than 0.5%. Technology stocks also advanced, mirroring strength on Wall Street, with Shopify rising more than 2%.

In contrast, gold prices declined as receding geopolitical tensions curbed safe-haven demand, pressuring mining shares. Agnico Eagle and Wheaton Precious Metals fell more than 1%, while Barrick Gold dropped over 1.5%.

Investors are also looking ahead to May GDP data due later this week for updated signals on Canada’s economic momentum. Markets still largely expect the Bank of Canada to keep interest rates on hold for most of the year, though the probability of a rate hike by December has risen.