FX.co ★ TSX Set for Fifth Monthly Gain

Futures tracking Canadian equities edged higher on Monday, positioning the stock market for a fifth straight monthly advance. A sustained rally in mining shares—underpinned by rising metal prices, particularly gold—has been a key driver of the index in recent months.

Oil prices also rebounded on Monday as tensions in the Middle East intensified, with the United States and Iran exchanging strikes for the first time in about a month and fresh worries surfacing over shipping through the Strait of Hormuz. The uptick in crude prices bolstered energy producers but weighed on financials and the broader market, amid renewed concerns that higher energy costs could stoke inflation.

The Bank of Canada is set to announce its next policy decision on Wednesday and is widely expected to leave its benchmark interest rate unchanged at 2.25%. At the same time, expectations for a US Federal Reserve rate hike in mid-September strengthened after Chair Warsh reaffirmed the Fed’s commitment to bringing inflation down in his Jackson Hole speech on Friday.