2026.07.1320:28:42UTC+00TSX Edges Lower Ahead of BoC Decision

The S&P/TSX Composite Index slipped 0.1% to close at 35,253 on Monday, pressured by escalating military tensions between the United States and Iran. Heavy missile and drone exchanges over the weekend and into Monday raised fresh concerns about crude flows through the Strait of Hormuz, driving oil prices higher.

Bond yields climbed as renewed inflation worries reinforced expectations that interest rates in North America will stay elevated for an extended period. Financials were weaker, with Royal Bank of Canada down 0.3%, Brookfield off 0.9%, and CIBC lower by 0.6%.

Gold prices declined on expectations of a more hawkish Federal Reserve, putting pressure on mining shares. Agnico Eagle fell 2.2%, Barrick Gold dropped 2.1%, Wheaton Precious Metals lost 2%, and Franco-Nevada tumbled 8.4%.

By contrast, energy stocks advanced alongside crude. Canadian Natural Resources gained 3.1%, Suncor Energy rose 3.5%, and Cenovus Energy added 4.7%.

Investors are also looking ahead to the Bank of Canada’s policy announcement on Wednesday, with the central bank widely expected to leave its key interest rate unchanged.