The S&P/TSX Composite Index slipped 0.2% to close at 33,818 on Monday, as stalled US–Iran peace talks weighed on risk appetite ahead of a dense calendar of central bank meetings, including the Bank of Canada. Oil prices advanced, with restricted shipments through the Strait of Hormuz keeping global supply conditions tight.
Both the Bank of Canada and the US Federal Reserve are scheduled to announce policy decisions on Wednesday. While markets largely expect the BoC to leave rates unchanged, persistent geopolitical risks, ongoing oil shocks, and fears of energy-driven stagflation—together with higher bond yields and worries about softer credit demand—have fuelled speculation that the central bank could adopt a more hawkish tone later this year.
Financials were mixed: Brookfield declined 1.7%, and Fairfax shed 2.6% ahead of its earnings release, while BMO and TD each added 0.4%. Shopify fell 1.4% in the run-up to a busy week for major US tech earnings. Energy producers outperformed, with Canadian Natural up 1.2% and Imperial Oil gaining 1%, as crude prices extended their rally on mounting supply concerns.