Canadian stocks edged lower on Thursday amid by a decrease in crude oil prices due to the reopening of the Strait of Hormuz and a plunge in gold prices due to the possibility of higher U.S. interest rates, both of which weighed on the energy and metal-linked materials sectors, respectively, and pulled down the market.
After opening higher than yesterday's close, today the benchmark S&P/TSX Composite Index lost momentum early in the session and traded firmly negative throughout the rest of the day before settling at 34,969.26, down by 155.85 points (or 0.44%).
Six of the 11 sectors posted gains today, with the healthcare sector leading the pack.
Last night in France, after the G7 summit, French President Emmanuel Macron hosted a dinner at the Palace of Versailles for U.S. President Donald Trump during which Trump signed the Memorandum of Understanding with Iran.
The U.S. sent it to Iran where its President Masoud Pezeshkian signed it to approve the finalization. Pezeshkian later posted the document on social media.
According to the 14-point preliminary agreement, the U.S. and Iran agree to extend the ceasefire for 60 days to facilitate negotiations on all critically contentious issues, including Iran's nuclear programs.
Offering much-needed relief for oil and energy markets, the signing ensured the reopening of the Strait of Hormuz. More than 100 ships loaded with oil are now readying to move ahead to their respective destinations. The prospects of the free flow of oil pressured crude oil prices on the downside.
Today, U.S. Vice President JD Vance stated that the long-term operations across the Hormuz strait will be regulated in the final deal.
Yesterday, the International Energy Agency warned that global consumption will decline by 1.1 million barrels per day in 2026 and warned of a supply glut in 2027. However, the Secretary-General of the Organization of Petroleum Exporting Countries Haitham al-Ghais dismissed this forecast.
Yesterday, after its two-day monetary policy meeting, the U.S. Federal Reserve announced holding interest rates in the current 3.50% to 3.75% range.
The interest rate projections by the Fed's monetary policy officials hinted at possible rate hikes in 2026. The prospects of a high-interest regime in the near-term weighed on gold prices.
Canadian investors are now focusing on the ongoing talks between Canada and the U.S. regarding the renewal of the Canada-United States-Mexico Agreement (or CUSMA) free-trade pact.
The deal underpinning around $1.6 trillion in annual trilateral trade is coming up for renewal by July 1 when the three countries need to approve it.
This tripartite deal has allowed exporters in Canada to send their goods to the U.S. without being impacted by the huge tariffs imposed by Trump last year.
The U.S. has held positive negotiations with Mexico, but talks with Canada are ongoing with no breakthrough so far. Anxiety has increased among Canadian business groups as Trump has hinted a couple of times that he is not eager to renew the pact.
Adding to investor jitters, yesterday in France, Trump told reporters that the U.S. would do better as a country by not having the agreement signed though he added that he may sign it.
Data released by Statistics Canada revealed that producer prices increased 1.20% month-over-month in May, below a downwardly revised 1.60% in April and forecasts of 1.8%. This is the fifth consecutive monthly increase. On a year-on-year basis, prices soared 13.60%.
Major sectors that gained in today's trading were Healthcare (2.27%), Industrials (0.92%), Financials (0.50%), Real Estate (0.49%), Utilities (0.40%), and Consumer Staples (0.02%).
Among the individual stocks, Curaleaf Holdings Inc (5.88%), Chartwell Retirement Residences (2.04%), Toromont Ind (17.14%), Badger Infrastructure Solutions Ltd (4.67%), and Air Canada (4.63%) were the prominent gainers.
Major sectors that lost in today's trading were Consumer Discretionary (0.44%), Energy (1.87%), IT (2.51%), and Materials (2.74%).
Among the individual stocks, Gildan Activewear Inc (2.33%), Kelt Exploration Ltd (4.50%), Vermilion Energy Inc (3.55%), Strathcona Resources Ltd (3.26%), CGI Inc (7.10%), Blackberry Limited (5.29%), and Constellation Software Inc (4.55%) were the notable losers.
Energy Fuels Inc (8.19%) and Goeasy Ltd (7.43%) were among the prime market-moving stocks today.
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June 12, 2026 17:14 ET Major central bank action was the focus this week in economic news. The European Central Bank became the first major central bank to move in response to the rising inflationary pressures in the backdrop of the conflict in the Middle East. In North America, the U.S. inflation and trade data as well as Canada’s central bank decision gained attention. The Chinese trade data was the main news in Asia.