TORONTO – Canada’s main stock index rose to a record high on Monday, led by metal mining shares, as investors globally cheered a preliminary agreement to end the war in the Middle East and reopen the Strait of Hormuz.
The Toronto Stock Exchange’s S&P/TSX Composite Index ended up 337.79 points, or 1%, at 35 275.64, eclipsing the record closing high it posted on June 4.
Wall Street’s main indexes also posted gains as the deal between the US and Iran led to an easing of inflation fears.
“The planned reopening of the Strait of Hormuz and the end of the US naval blockade have helped send crude oil sharply lower, easing some of the geopolitical pressure that had recently weighed on market sentiment,” Colin Cieszynski, chief
market strategist at SIA Wealth Management, said in a note.
Lower oil prices could reduce pressure on central banks to hike interest rates. The Federal Reserve is due to begin a two-day policy meeting on Tuesday.
The materials index, which includes metal mining shares, jumped 5.2% as gold and copper prices climbed.
Technology added 1.2% and consumer discretionary ended 0.8% higher.
Five of 10 major sectors ended lower including energy, which lost 2.7%. The price of oil settled 4.9% lower at $80.75 a barrel.
Mixed domestic data included manufacturing sales, which grew by 4.2% in April from March.
Canada’s Ambassador to the US, Mark D. Wiseman, said that discussions with Washington on reviewing the US-Mexico-Canada free trade pact were productive and respectful.