TSX Recovers as Trump Extends Iran Ceasefire Amid Persistent Gulf Tensions

The S&P/TSX Composite Index rose 0.43% to close at 33,955.11, recovering from previous losses as geopolitical tensions eased slightly. The rally was sparked by President Donald Trump's decision to extend the ceasefire in the conflict with Iran, providing a temporary reprieve for risk assets and calming investor nerves. The conflict, which began in February, has caused significant disruption to global energy markets due to Iran's blockade of the Strait of Hormuz. While the ceasefire extension offers a window for diplomacy, the U.S. has maintained its blockade of Iranian ports. Recent reports of gunfire and the seizure of two ships by Iran suggest the region remains highly volatile, capping the day's gains. Sector performance was mixed, with Healthcare leading the surge at 6.63%, followed by Communication Services and Materials. Notable individual movers included Curaleaf Holdings, which jumped 25.66%, and Rogers Communications, which rose 13.55%. Conversely, Financials and Consumer Staples faced downward pressure. Beyond the Gulf crisis, investors are closely monitoring the renewal of the Canada-United States-Mexico Agreement (CUSMA), with a July 1 deadline looming. Prime Minister Mark Carney has appointed a new advisory team to lead these critical trade negotiations to protect Canadian exports from potential tariffs. On the domestic economic front, Statistics Canada reported that new housing prices fell by 0.20% month-on-month in March. This decline contradicted market forecasts, which had anticipated a 0.20% increase, following a 0.30% rise in February.