Market Overview

On Thursday, Canada’s main equity market posted gains as investors weighed the impact of renewed fighting in the Middle East on inflation expectations. By 12:14 ET (16:44 GMT) the S&P/TSX 60 index was up 15 points, or 0.7%, while the broader S&P/TSX composite index rose 296 points, equivalent to a 0.9% increase.

Sector Performance

Financial stocks, which carry a heavy weighting in the TSX, fell 1.9% amid heightened risk sentiment. In contrast, energy stocks rose 3.8%, mirroring the rally in crude oil prices driven by concerns over supply disruptions through the Strait of Hormuz. The technology sector ended the session down 0.7%.

Commodity Moves

Oil prices were volatile. At 07:21 ET, Brent crude futures gained 0.9% to $78.68 per barrel and U.S. West Texas Intermediate (WTI) futures rose 0.8% to $74.05 per barrel. Both benchmarks had surged more than 8% on the previous day, keeping them well above earlier‑week levels.

Gold prices recovered some of their earlier losses. Spot gold increased 0.6% to $4,101.14 an ounce, while gold futures rose 0.7% to $4,110.30 an ounce by 07:35 ET. The metal’s rebound was aided by a stabilization of the U.S. dollar and by minutes from the Federal Reserve’s June meeting, which showed central bankers’ growing anxiety over elevated inflation.

U.S. Market Reaction

U.S. equities also moved higher. By 12:18 ET the Dow Jones Industrial Average was up 175 points (0.3%), the S&P 500 gained 49 points (0.7%), and the Nasdaq Composite rose 224 points (0.9%). The positive bias followed U.S. President Donald Trump’s statement that the interim cease‑fire deal with Iran was “over,” prompting concerns about further escalation.

Monetary Policy Context

The Fed minutes indicated that while there was a case for raising interest rates in June, policymakers were also considering a possible easing in the months ahead. Higher rates typically weigh on gold and other non‑yielding assets, but the minutes highlighted rising inflation pressures, with U.S. price growth accelerating since the onset of the U.S.–Iran conflict in late February and remaining well above the Fed’s 2% target.

Summary of Key Figures

  • TSX 60: +15 points (0.7%)
  • TSX composite: +296 points (0.9%)
  • Financial sector: –1.9%
  • Energy sector: +3.8%
  • Technology sector: –0.7%
  • Brent crude: $78.68/barrel (+0.9%)
  • WTI crude: $74.05/barrel (+0.8%)
  • Spot gold: $4,101.14/oz (+0.6%)
  • Gold futures: $4,110.30/oz (+0.7%)
  • Dow: +175 points (+0.3%)
  • S&P 500: +49 points (+0.7%)
  • Nasdaq: +224 points (+0.9%)