On Tuesday morning, the S&P/TSX Composite Index gained 1.3%, nearing a record high after a period of global market recovery. The rise followed a decline in oil prices and renewed hope for negotiations between the U.S. and Iran after President Donald Trump called off planned military action. While uncertainty remains about whether the two nations will reach a lasting agreement to end hostilities, optimism is growing that a deal to reopen the Strait of Hormuz could come soon. The index closed at 35,801.59, up 575.45 points (or 1.63%), as traders reacted to progress in mediatory efforts and Qatar’s role in facilitating negotiations. The markets were closed on Monday due to the Civic Day Holiday, which contributed to the sharp rebound.
Gains in materials and technology stocks were particularly notable, with the Materials Capped Index rising 4.7% and the Information Technology Capped Index up 4.5%. Americas Gold & Silver Corporation surged by 14%, while Firan Technology Group climbed 6.5%. In contrast, energy stocks fell sharply, with the Energy Capped index dropping 3.1% as crude prices remained weak. The IT sector led the overall gains, with a sector-wide increase of 7.09%, while the Energy sector declined by 2.85%. Other rising sectors included Materials (5.17%), Industrials (3.05%), and Consumer Discretionary (1.02%). Declining sectors were Utilities (0.75%), Real Estate (0.83%), and Healthcare (2.46%).
Canada’s trade balance saw a major boost in June, expanding to a surplus of C$3.86 billion—the largest in four years. Exports reached a record C$77.5 billion, a 0.4% increase from May, while imports rose to a new high of C$73.6 billion. This strong performance in international trade added fuel to the market’s upward movement. Canada’s trade surplus in June marked a widening from the C$3.70 billion in May and was the largest in over four years. Exports rose 0.40% from the previous month to a record high of CAD77.50 billion, while imports increased by 0.20% to a record of CAD73.60 billion.
The S&P Global Canada Manufacturing PMI rose to 53.5 in July, up from 53 in the previous month. This marked the highest level since June 2022 and exceeded expectations of a drop to 50.2. The increase showed stronger manufacturing activity than had been anticipated, offering further support for investor confidence.
Top Gainers and Losers
Among the leading performers were Mda Space, which jumped nearly 14%, and Thomson Reuters, which soared 9.1%. In the financial sector, Brookfield Asset Management and Onex Corporation climbed by 4.5% to 7%. Both showed strong interest from investors looking for stable returns in a volatile market. Other notable gainers included Celestica Inc (12.91%), Firan Technology Group Corp (9.58%), Constellation Software Inc (7.39%), Dye and Durham Limited (6.82%), Shopify Inc (5.62%), and Southern Cross Gold Consolidated Ltd (18.78%). Aya Gold and Silver Inc (16.85%) and Trekor Metals Limited (16.38%) also made significant gains. Energy stocks faced the most pressure, as lower oil prices continued to weigh on the industry. Producers and refiners saw the Energy Capped index fall by 3.1%. Utilities and healthcare stocks also experienced declines, though not as sharply as energy-related firms. Major losing stocks included Vermilion Energy Inc (7.01%), Baytex Energy Corp (6.73%), Spartan Delta Corp (5.46%), Bausch Health Companies Inc (6.01%), and Granite Real Estate Investment Trust (3.79%).