Equities in Canada’s largest market opened flat on Monday, dragged down by the losses in tech and financial stocks, while worries that the Middle East conflict could drag on for weeks shook global markets and eclipsed a rise in energy shares.
The TSX squeezed higher 1.76 points to 34,341.75.
The Canadian dollar shook off 0.05 cents at 73.10. cents U.S. U.S. and Israeli strikes — and Iranian retaliation — rippled across sectors worldwide, from shipping and aviation to oil, while investors worried that a drawn-out regional war could push energy costs higher and disrupt business in the Gulf region.
U.S. President Donald Trump suggested on Sunday that the conflict with Iran could go on for the next four weeks.
Separately, India and Canada will aim to conclude a free trade pact by the end of this year, Prime Minister Mark Carney said on Monday during his first visit to New Delhi.
The two sides also agreed on a $2.6-billion uranium deal, under which Cameco will supply the fuel to India to support its nuclear ambitions and to work towards a clean, reliable base load power.
Shares in Cameco rocketed $4.48, or 2.8%, to $165.86.
On the economic front, the S&P Global Canada Manufacturing PMI rose to 51.0 in February 2026 from 50.4 in the previous month, marking the second month of improvement and recording a 13-month high
On the economic front, the S&P Global Canada Manufacturing PMI rose to 51.0 in February 2026 from 50.4 in the previous month, marking the second month of improvement and recording a 13-month high
ON BAYSTREET
The TSX Venture Exchange eked up 0.91 points to 1,107.60. Still, that index has improved 107 points, or 11.6%, on the week.
All but three of the 12 TSX subgroups were lower mid-morning, as health-care swooned 1.5%, real-estate lost 1.2% and financials dipped 0.8%.
The three gainers were energy, better by 2.8%, industrials, stronger 2.7%, and telecoms, up 0.6%.
ON WALLSTREET
Stocks fell on Monday after the U.S. and Israel attacked Iran over the weekend, causing oil prices to surge and adding an unstable Middle East to a list of growing worries for equity investors.
The Dow Jones Industrial Average descended 250.29 points, or 1.1%, to 48,727.63.
The S&P 500 dwindled 36.94 points to 6,841.94.
The NASDAQ dumped 95.10 points to 22,573.11.
The joint U.S.-Israeli strikes killed Supreme Leader Ayatollah Ali Khamenei, marking a watershed moment for the Islamic Republic and one of its most consequential episodes since 1979. Iranian officials vowed a forceful retaliation against the strikes, raising fears the conflict could escalate further across the region as blasts were heard in places such as Dubai and Abu Dhabi.
President Donald Trump told the media that U.S. military operations in Iran are “ahead of schedule,” but investors are still worried about a prolonged conflict despite those comments.
The major averages recouped a chunk of their losses, thanks to gains in defense stocks. Northrop Grumman advanced around 4%, as did RTX, while Lockheed Martin climbed 3%. Energy shares including Exxon Mobil and Chevron saw gains as well.
Prices for the 10-year Treasury weakened, hiking yields to 4.04% from Friday’s 3.96%. Treasury prices and yields move in opposite directions.
Oil prices strengthened $4.58 to $71.60 U.S. a barrel.
Gold prices regained $99.10 to $5,347 U.S. an ounce.
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