Canada Stocks: Canada stocks advance as investors weigh U.S.-Iran talks, inflation data

Alamos Gold

22/06/2026 15:16

(Updates with analyst's quote, context throughout)
    * Gold miners rise as gold rebounds
    * Canada's annual inflation rate accelerates to 3.2% in May
    * Traders expect Bank of Canada to raise rates by 25 bps by
year-end
    * TSX rises after three straight days of losses

    June 22 (Reuters) - Canada's main stock index rose on Monday
after three consecutive sessions of losses, as investors
assessed fragile U.S.-Iran peace talks and a hot domestic
inflation report.
    The Toronto Stock Exchange's S&P/TSX Composite Index
 .GSPTSE  rose 0.5% to 35,045.74 points by 9:52 a.m. ET.
    * Gold miners Lundin Gold  LUG.TO  gained 4.8%, Alamos Gold
 AGI.TO  added 4.5% and G Mining Ventures  GMIN.TO  rose 3.9% as
bullion prices  XAU=  rebounded from a more than one-week low
after Iran reported progress in peace talks with the United
States.  GOL/ 
    * The United States and Iran made "encouraging progress" at
the first round of talks aimed at reaching a final peace deal,
mediators said, although tension persisted over Lebanon and the
Strait of Hormuz.
    * On the other hand, energy stocks  .SPTTEN  were among the
top losers as crude prices fell.  O/R 
    * "Markets could see heightened volatility during the
process as this won’t be a simple handshake to get it done,”
said Russ Mould, investment director at AJ Bell, referring to
the peace talks.
    * Canada's annual inflation rate in May accelerated more
than expected to 3.2%, a 29-month high, data showed, though the
reading is unlikely to shift the Bank of Canada's view on
underlying inflation.
    * The central bank said this month it saw limited evidence
that higher energy prices were fueling broad-based inflation, as
it left its key rate unchanged at 2.25% for the fifth straight
meeting. Traders expect a 25-basis-point rate hike before
year-end. 
    * Last week, Canada's banking regulator lowered capital
requirements for the country's biggest banks for the first time
in three years, a move that will allow them to lend more as the
government seeks to boost investment in AI, resources and other
areas amid trade and geopolitical uncertainties.
    * Toronto's S&P/TSX Composite Index  .GSPTSE  has slipped
about 2% from Wednesday’s record high, but remains on course for
an eighth straight quarterly gain, its longest winning streak on
record.

     
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(Reporting by Medha Singh in Bengaluru; Editing by Jonathan
Ananda)
((mailto:Medha.Singh@thomsonreuters.com; +91 80 6210 0592; X,
formerly Twitter: @medhasinghs;))