The S&P/TSX Composite Index inched higher to trade above 34,500 on Thursday, recovering from earlier losses following reports that the United States and Iran had reached a preliminary agreement to extend their ceasefire, subject to approval from US President Trump. The news came in the wake of Iran’s strike on a US air base, itself a response to US attacks on what Washington described as an Iranian drone facility.
Government bond yields declined amid signs of progress toward a potential peace deal. Mining shares rebounded as gold prices pared losses, with Agnico Eagle and Barrick each gaining nearly 2%, and Wheaton Precious Metals climbing more than 2.5%. Technology stocks also advanced: Shopify surged nearly 6%, while Constellation Software added over 3.5%, mirroring strength in US hardware and software names. UBS reiterated its “neutral” rating on Shopify and kept its price target at $130.
In contrast, major Canadian banks slipped even after generally solid quarterly earnings, with Royal Bank of Canada down 0.9% and Toronto-Dominion Bank off 0.2%.