26.05.202613:53:29UTC+00TSX Slips on Renewed Middle East Concerns

The S&P/TSX Composite Index retreated from its record high to close near 34,000 on Tuesday, as optimism over a potential resolution to the Middle East conflict faded following US military strikes in Iran. The renewed escalation heightened uncertainty around the timing of a reopening of the Strait of Hormuz, reigniting worries about persistent inflation and the prospect of interest rates staying higher for longer.

Gold prices slipped, pressuring mining stocks: Agnico Eagle fell 1.7%, Barrick declined 1%, and WPM dropped 2.6%. Investors also turned their attention to upcoming quarterly results from the major Canadian banks. RBC and TD Bank both inched up 0.1% ahead of earnings due later this week, while BMO, BNC, and NBC were little changed before their reports on Wednesday.

In corporate news, Manulife Financial added 0.2% after issuing a 10-year, Singapore dollar–denominated subordinated Tier 2 bond with a five-year non-call period. Markets were also tracking the opening round of formal negotiations on the US-Mexico-Canada Agreement (USMCA).