Canada Stocks: TSX slips as pullback in gold, weaker crude weigh

i-80 Gold

06/07/2026 17:04

    July 6 (Reuters) - 
    Canada's resource-heavy benchmark stock index was down on Monday, pressured by a slide in gold and crude oil prices, while investors assessed domestic and U.S. economic data to gauge the Federal Reserve's monetary policy path. 
  

    The Toronto Stock Exchange's S&P/TSX Composite index .GSPTSE fell 0.25% to 35,186.63 points by 11:59 a.m. ET.
  

        The materials .GSPTTMT and global gold .SPTTGD indexes fell 2.5% and 2.3%, respectively, as bullion prices retreated from a two-week high GOL/. Stocks of Canadian miners I-80 Gold Corp IAUX.A, Eldorado Gold ELD.TO and Endeavour Silver EDR.TO were down between 2.9% and 6.9%. 

        Canada's energy index .SPTTEN dipped 0.4%, tracking a fall in crude prices LCOc1, CLc1 earlier in the day, after the OPEC+ agreed to further raise output targets from August even as exports through the Strait of Hormuz continued to recover, increasing prospects of elevated global supplies. O/R

        Vermilion Energy VET.TO and International Petroleum Corporation IPCO.TO were among the biggest decliners on the energy index, falling 1.3% and 1%, respectively.

        An S&P Global 
        survey
         showed that Canada's services economy contracted in June as geopolitical uncertainty and elevated prices hurt demand. However, the recent slide in crude prices has raised expectations of the economy returning to growth. 
      
"We're looking at the economy to kind of bounce back from two quarters of flat to negative growth with slightly positive growth," said Michael Dehal, senior portfolio manager at Dehal Investment Partners at Raymond James.

        "So we're not really concerned on the macro front, given the war is done and inflationary concerns are easing."
      

        Last week, the S&P/TSX Composite index hovered near a record high, supported by easing tensions in the Middle East and fading Fed rate-hike expectations following a soft U.S. labor market report.
      

        Traders are currently pricing in just one U.S. rate hike by the end of this year, according to LSEG data, while the Bank of Canada is expected to keep interest rates steady this year, with its next policy decision due on July 15.
      

        Canada has selected Germany's TKMS to build 12 submarines for its navy, the Globe and Mail 
        reported
         on Monday, in a move seen as deepening defense ties with Europe.
      

 (Reporting by Sudeshna Ghoshal and Sruthi Shankar in Bengaluru; Editing by Diti Pujara)
 ((sruthi.shankar@thomsonreuters.com;))