Canada's main stock index opened higher on Monday, lifted by information technology shares, with investors shifting focus from the Middle-East tensions to this week's Group of Seven summit and U.S. Federal Reserve policy meeting.
The TSX Composite Index climbed 134.07 points to open the week at 26,638.43
The Canadian dollar advanced 0.02 cents to 73.78 cents U.S.
The Middle-East escalation coincided with the Group of Seven leaders from Britain, Canada, France, Germany, Italy, Japan and the U.S., along with the European Union, gathering in Alberta, where U.S. President Donald Trump's tariffs have already strained ties.
Monday's discussions will center on advancing trade deals, with investors closely watching prospects of Canada moving closer to a trade agreement with the U.S.
On the company front, Bombardier and France-based aerospace firm Safran announced a defense technology innovation partnership on Monday. Bombardier shares hiked $1.63, or 1.6%, to $104.60.
Economically speaking, Canada Mortgage and Housing Corporation reported the six-month trend in housing starts was flat (0.8%) in May (243,407 units).
Also, the Canadian Real Estate Association said the number of home sales recorded over Canadian MLS Systems climbed 3.6% between April and May 2025, marking the first gain in activity since last November.
ON BAYSTREET
The TSX Venture Exchange recovered 4.63 points early Monday to 725.76.
All but three of the 12 TSX subgroups were higher in the first hour on Monday, led by information technology, up 1.5%, while consumer discretionary gained 1.3%, and financials were richer by 1%.
The three laggards were energy, descending 1.4%, gold, down 1.3%, and materials, off 0.5%.
ON WALLSTREET
Stocks jumped on Monday as investors were optimistic that the conflict between Israel and Iran may remain contained. The spike in oil prices due to the escalating conflict also eased.
The Dow Jones Industrials zoomed 480.70 points, or 1.1%, to 42,678.49
The S&P 500 index regrouped 69.08 points, or 1.2%, to 6,046.05
The NASDAQ Composite revived 290.11 points, or 1.5%, to 19,696.94.
“Magnificent Seven” stocks were higher Monday as the pullback in oil prices caused investors to take on more risk again. Tesla was up more than 1%, and Meta Platforms increased about 3%. Additionally, other stocks like Palantir, which is viewed as a beneficiary of increasing global conflict, moved more than 3% higher.
Investors also digested weaker-than-expected manufacturing survey data Monday morning, which came ahead of the Federal Reserve’s interest rate decision on Wednesday.
Traders have been closely watching the Middle East after Israel’s strike on Iran Friday. Iran launched missiles in retaliation, increasing the severity of conflict in the region.
However, there was some optimism on Monday that the situation wouldn’t escalate after a Wall Street Journal report said that Iran has signaled through intermediaries that it would be open to restarting negotiations as long as U.S. doesn’t join Israel in the attacks. The report also said Iran has messaged to Israel that both sides should keep attacks contained.
Prices for the 10-year Treasury were flat, maintaining yields at Friday’s 4.41%. Treasury prices and yields move in opposite directions.
Oil prices slumped $2.52 to $70.46 U.S. a barrel.
Gold prices slid $37.90 to $3,414.90 U.S. an ounce.
