FX.co ★ TSX Falls as Miners Slide

The S&P/TSX Composite Index fell nearly 1% on Monday, slipping below the 36,500 mark, pressured primarily by weakness in mining stocks. Gold prices retreated as renewed tensions in the Middle East stoked inflation concerns, while hawkish remarks from Federal Reserve Chair Kevin Warsh reinforced expectations for a September interest rate hike. Shares of Agnico Eagle and Barrick lost more than 2%, and WPM declined nearly 3%.

Technology stocks also moved lower, mirroring weakness among major US hyperscalers. Shopify dropped 5%, and Constellation Software fell nearly 1%. The big Canadian banks traded close to unchanged, underpinned by a series of strong earnings reports last week, even as inflationary pressures resurfaced.

The Bank of Canada is scheduled to deliver its next policy decision on Wednesday and is widely expected to leave its benchmark interest rate steady at 2.25%. In contrast to the broader market weakness, energy producers benefited from higher crude prices: Canadian Natural and Suncor advanced more than 2.5%, while Imperial Oil and Cenovus each gained over 2%.