Canada's main stock index opened muted on Monday as investors assessed escalating U.S.-Iran tensions in the Middle East and a softer-than-expected domestic inflation reading.
The TSX recovered 109.3 points to open Monday at 35,373.15.
The Canadian dollar slid 0.13 cents to 71.20 cents U.S.
On the economic slate, Statistics Canada reported the consumer price index increased 2.8% year over year in June, following a 3.2% gain in May. On a seasonally adjusted monthly basis, the CPI fell 0.1% in June.
ON BAYSTREET
The TSX Venture exchange gained 4.17 points to 859.06.
All but three of the 12 TSX subgroups were higher in the first hour, with information technology ahead 1%, while consumer staples soared 0.7% and gold brightened 0.5%.
The three laggards were energy, down 0.5%, while health-care slipped 0.2%, and telecoms gave back 0.03%.
ON WALLSTREET
The S&P 500 and NASDAQ rose on Monday as oil prices fluctuated in response to the latest bout of military exchanges between the U.S. and Iran. Chipmakers also traded higher to give U.S. equity markets a boost.
The Dow Jones Industrials stepped back 49.54 points to 52,096.88
The much broader index recovered 26.73 points to 7,454.42
The NASDAQ Composite barreled ahead 166.22 points to 25,686.46.
Micron Technology led the advance, climbing around 5%. Astera Labs also gained 5%, while Teradyne rose more than 6%. Advanced Micro Devices rose more than 4%.
The U.S. completed its ninth consecutive day of strikes on Iran overnight, but investor sentiment improved by midmorning in London after Iranian Foreign Ministry spokesman Esmail Baghaei lifted hopes for a diplomatic settlement.
Baghaei told reporters that intermediaries had continued to exchange messages with Iran amid the latest round of U.S. strikes, and said negotiations between the two adversaries could be pursued based on national interests.
That said, U.S. crude futures were last little changed at around $82 per barrel, reversing an earlier gain. International benchmark Brent also eased from levels seen overnight, trading up marginally at nearly $88.
Prices for the 10-year Treasury backpedaled, raising yields to 4.58% from Friday’s 4.55%. Treasury prices and yields move in opposite directions.
Oil prices eked lower four cents to $82.45 U.S. a barrel.
Gold prices retreated $5.30 to $4.013.50 U.S. an ounce.
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