Canadian Stocks Edge Higher Amid Ceasefire Signals in Gulf Tensions

Canadian stocks edged higher on Monday as investors assessed ceasefire attempts to de-escalate the U.S.-Iran conflict in the Gulf. The S&P/TSX Composite Index closed at 33,181.97, a 0.22% increase from the previous session. The market's modest gains followed three consecutive days of upward momentum, with seven of the 11 sectors posting gains, led by the consumer discretionary sector. The ongoing conflict, which began on February 28, has led to Iran's blockade of the Strait of Hormuz, a critical oil transit route, causing global energy price volatility. U.S. President Donald Trump extended a deadline for Iran to reopen the strait until Tuesday at 8:00 p.m. ET, while regional mediators from Pakistan, Egypt, and Turkey are working to broker a 45-day ceasefire. Despite these efforts, tensions remain high, with recent attacks near Iran's Bushehr nuclear power plant raising fears of a potential nuclear incident. The S&P Global Composite PMI for Canada rose to 47.60 in March, reflecting a slight improvement in business activity, though still indicating a contraction. Energy and defense sectors saw mixed performance, with energy stocks up 0.65% amid uncertainty over oil supply disruptions. Investors remain cautious, balancing optimism over ceasefire talks with concerns over the conflict's potential escalation. The consumer discretionary and industrials sectors gained 0.76% and 0.71%, respectively, while individual stocks like Dollarama Inc and Mda Space Ltd saw notable gains.