Canada’s benchmark S&P/TSX Composite Index closed Thursday at 34,850.21, gaining 114.12 points, or 0.33%, as investors weighed escalating Gulf tensions against softer U.S. inflation data.
The index traded firmly in positive territory throughout the session, partially recovering losses accumulated over the two preceding trading days.
Eight of the index’s 11 sectors posted gains on the day, with the materials sector leading all advancers with a gain of 1.17%.
A fresh attack on a Singapore-flagged container vessel, Ever Lovely, traveling through a new U.N.-backed route through the Strait of Hormuz reignited geopolitical concern across energy markets.
The U.K. Maritime Trade Operations center confirmed the ship was struck by an unknown projectile on its starboard side, approximately 7.5 nautical miles southeast of Dahit, in Oman’s Musandam exclave.
No casualties or environmental damage were reported, though the vessel sustained damage to its bridge, prompting UKMTO to advise all ships to transit the area with caution.
Iranian military had previously threatened vessels against passing through the strait without its permission, adding further pressure to oil prices following the attack.
The energy sector advanced in response to surging crude prices, which had declined in recent days after the signing of a U.S.-Iran Memorandum of Understanding and the reopening of the Strait of Hormuz.
On the U.S. economic front, the PCE index rose 0.40% month-on-month in May, below market forecasts of a 0.50% advance, while the year-over-year reading came in at 4.10%, matching expectations.
The U.S. economy also expanded at an annualized rate of 2.10% in Q1 2026, revised upward from the second estimate of 1.60% and well above the 0.50% recorded in Q4 2025.
Easing U.S. rate-hike concerns pushed gold prices higher, lifting gold-linked mining stocks and contributing to strong performance across the materials sector.
The Bank of Canada held its benchmark interest rate steady at 2.25% on June 10, with minutes from the meeting showing the top six senior policymakers agreed the level was sufficient to balance inflation pressures against a struggling economy.
Canada’s economy contracted for two consecutive quarters, and Statistics Canada reported that the annual inflation rate climbed to 3.20% in May, up from 2.80% in April.
In its summer outlook report, Deloitte Canada projected Canada’s economy would rebound toward the end of 2026, with growth expected to reach 0.70% before accelerating to 2.00% in 2027.
The outlook factored in Canada maintaining relatively tariff-free access to the U.S. market, with exporters currently routing goods through the Canada-United States-Mexico Agreement to circumvent U.S.-imposed tariffs.
The CUSMA deal is set to come up for renewal by July 1, and while its full term runs to 2036, a renewal would extend it through 2042, though member nations can exit with six months’ notice.
Prime Minister Mark Carney stated after a call with U.S. President Donald Trump that Canada will work with the U.S. and Mexico to modernize the trilateral trade agreement, even as Trump has expressed little enthusiasm for continuing the arrangement.
Among individual gainers, Aya Gold and Silver Inc surged 6.50%, Americas Gold and Silver Corporation climbed 4.62%, Endeavour Silver Corp rose 4.11%, and Canadian National Railway Co advanced 3.51%.
On the losing side, Dye and Durham Limited fell 8.07%, Constellation Software Inc dropped 3.65%, Computer Modelling Group declined 3.64%, Shopify Inc slid 2.58%, and Rogers Communications Inc lost 2.22%.
Blackberry Limited and Jamieson Wellness Inc were among the session’s most significant market movers, with Blackberry surging 19.25% and Jamieson Wellness rising 10.41%.
