Canadian stocks moved higher on Friday, extending the gains from the previous session amid increasing optimism following U.S. President Donald Trump's reassurance on signing of a U.S.-Iran peace agreement over this weekend and reopening of the Strait of Hormuz. A surge in the gold-linked materials sector provided impetus to the index.
After opening higher than yesterday's close, today the benchmark S&P/TSX Composite Index traded firmly positive before settling at 34,937.85, up by 266.39 points (or 0.77%).
Six of the 11 sectors posted gains today, with the materials sector leading the pack.
Trump announced yesterday through his social media platform Truth Social that discussions with Iran have resulted in an agreement that has been approved by the highest level of Iranian leadership.
Trump also stated that the final points in great detail have been endorsed by Iran as well as its regional neighbors and intermediaries and added that the time and venue of signing the deal will be announced soon.
Later, while speaking to reporters, Trump declined to set a deadline but hinted that the signing could possibly happen in Europe as early as this weekend and also reaffirmed that immediately the Strait of Hormuz will reopen.
Trump reiterated his claim that the crucial waterway, which had been effectively closed by Iran since the start of the war, had been open already for over a month without public knowledge and claimed that millions of barrels of oil were brought across the strait with assistance from U.S. forces.
The announcement on early resumption of normal oil trade in the gulf provided much relief to the traders, and with supply disruption concerns now off the table, crude oil prices slumped while gold soared.
A Bloomberg News report stated that the deal could be signed in Geneva by June 14, coinciding with the G7 meeting in France which Trump is set to attend.
Without officially confirming Trump's announcement, Iran merely stated that though discussions were ongoing, nothing has been finalized.
With no details available on the text of the Memorandum of Understanding on key disputes like Iran's nuclear programs, U.S. sanctions on Iran, authority over Strait of Hormuz, Israel-Lebanon ceasefire, and unfreezing of Iran's assets in foreign countries, analysts welcomed the development with cautious optimism.
On the domestic front, concerns remain over the successful renewal of the tripartite Canada-United States-Mexico Agreement (or CUSMA) when it faces a review by July 1.
Trump has indicated recently that he is not looking to renew the high-stakes deal though discussions between Canada and the U.S. is going on.
On the economic front, it was an unremarkable day with no significant data releases.
In the U.S., market participants cheered the market debut of Elon Musk's SpaceX Initial Public Offering, valued at $1.77 trillion.
Major sectors that gained in today's trading were Materials (3.13%), Financials (0.86%), Real Estate (0.84%), Consumer Discretionary (0.69%), and Industrials (0.60%).
Among the individual stocks, Montage Gold Corp (11.80%), Taseko Mines Ltd (9.98%), Skeena Resources Limited (7.93%), Aya Gold and Silver Inc (7.49%), and Goeasy Ltd (5.92%) were the prominent gainers.
Major sectors that lost in today's trading were Communication Services (0.12%), Energy (0.48%), Consumer Staples (0.89%), IT (0.99%), and Healthcare (1.64%).
Among the individual stocks, Loblaw CO (2.52%), Maple Leaf Foods (1.34%), Empire Company Limited (1.30%), Curaleaf Holdings Inc (4.95%), Constellation Software Inc (4.38%), and Kinaxis Inc (2.26%). were the notable losers.
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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.