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CANADA STOCKS-TSX rises as Middle East tensions ease; BoC rate call awaited
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CANADA STOCKS-TSX rises as Middle East tensions ease; BoC rate call awaited
Jun 9, 2026 7:40 AM

(Updates prices and details throughout)

* TSX up 0.6%

* BoC rate decision awaited

By Tharuniyaa Lakshmi

June 9 (Reuters) - Canada's main stock index rose on Tuesday

as easing Middle East tensions lifted global sentiment, ahead of

the Bank of Canada's rate decision this week.

At 10:09 a.m. ET, the Toronto Stock Exchange's S&P/TSX

composite index was up 0.6% at 34,717.89 points.

* Iran and Israel said on Monday that they had halted

attacks on each other after an appeal from U.S. President Donald

Trump, settling back into a tenuous ceasefire announced on April

8.

* "Geopolitical tensions have simmered down, and investors

are kind of looking through them and focusing more on the

economic backdrop, which is still pretty constructive for

equities," said Michael Dehal, a senior portfolio manager at

Dehal Investment Partners at Raymond James.

* "We have some economic data coming out this week,

including the Bank of Canada's rate decision, which we largely

expect to be unchanged," he added.

* Investors will closely watch the central bank's interest

rate decision due on Wednesday for cues on the policy outlook.

* The BoC is expected to hold rates steady this month, while

traders have priced in a little over one 25-basis-point hike by

year-end, according to LSEG data.

* U.S. consumer prices data for May, due on Wednesday, will

also be closely watched for fresh clues on how the rise in

energy prices due to the Iran war is impacting inflation.

* Nine of the 10 TSX sectors traded higher, with energy

stocks being the lone laggard, down 2%, as oil prices

fell amid easing Middle East tensions.

* Consumer discretionary stocks led gains, with

apparel maker Gildan Activewear ( GIL ) up 4%.

* The materials group, which includes metal

mining stocks, gained 1.1%, with Seabridge Gold ( SA ),

Capstone Copper ( CSCCF ) and Ivanhoe Mines among the top

gainers on the index, up 9.6% to 3.5%.

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