TSX DRAGGED LOWER BY GOLD, MATERIALS STOCKS AS IRAN TENSIONS RENEW

July 13 (Reuters) - Canada's main stock index closed lower on Monday, weighed down by gold and materials stocks, as bullion prices took a hit after U.S. President Donald Trump said he was reinstating a naval blockade on Iran, boosting oil markets and reigniting inflation concerns.  

The Toronto Stock Exchange's S&P/TSX Composite Index was down 0.15% at 35,252.72 points.

• The index closed lower despite energy stocks rising 3.17%, tracking higher oil prices that rose more than 9%. [O/R]

• Trump said on Monday the United States was reinstating its blockade of Iranian shipping in the Gulf and would ensure the Strait of Hormuz stays open — for a fee — after the two sides exchanged more missile and drone attacks.

• The materials and global gold indexes fell 2.4% and 2.5%, respectively, tracking lower gold prices as inflation concerns reinforced expectations that the U.S. Federal Reserve could keep interest rates higher for longer. [GOL/]

• Financials fell 0.4%.

• Meanwhile, investors await the Bank of Canada policy decision due on Wednesday.

• The Bank of Canada is expected to keep its key policy rate unchanged at 2.25% on Wednesday, as signs of easing underlying price pressures give policymakers little reason to raise borrowing costs, while a rebound in economic growth after a technical recession reduces the need for any stimulus.

• "The risks are fairly balanced. A weaker economy would argue for lower interest rates, while inflationary pressures could warrant higher rates. The Bank of Canada does not have a clear view on the direction of its next move, which will depend on factors including developments in the Middle East, trade negotiations with the United States, inflation and labor market data. For now, they can afford to remain on hold as long as core inflation stays around 2%," said Allan Small, senior investment adviser of the Allan Small Financial Group with iA Private Wealth.

• Among individual stocks, Air Canada slipped 3% after the airline said it had reached a tentative collective agreement with the union representing about 11,000 technical operations, airport, cargo, logistics and supply employees.

(Reporting by Tharuniyaa Lakshmi in Bengaluru and Nivedita Balu in Toronto; Editing by Shreya Biswas and Matthew Lewis)

2026-07-13T21:22:58Z