Canada Stocks: TSX hits two-week high as peace deal hopes boost gold

Shopify

06/05/2026 21:27

Updates at market close

TSX ends up 1.2% at 33,981.82

Posts highest closing level since April 20

Materials group adds 6.5% as gold rallies

Energy falls 5% as oil settles 7% lower

By Fergal Smith

TORONTO, May 6 (Reuters) - Canada's main stock index rose to a two-week high on Wednesday as optimism rose for a diplomatic solution to end the war in the Middle East, with gains for financial and metal mining shares offsetting declines for energy.

The Toronto Stock Exchange's S&P/TSX composite index .GSPTSE ended up 414.91 points, or 1.2%, at 33,981.82, marking its highest closing level since April 20.

Stocks on Wall Street also climbed, while oil prices slumped as Iran said it was reviewing a new U.S. proposal. Sources said Washington and Tehran were closing in on a one-page memorandum to end the war in the Gulf while leaving tricky issues such as Iran's nuclear program for later.

"It's a tale of two markets," said Philip Petursson, chief investment strategist at IG Wealth Management. "We're seeing a broad rally across the materials, financials, tech excluding Shopify and the discretionary sectors, whereas energy and defensives are down."

The materials sector .GSPTTMT, which includes metal mining shares, rose 6.5% as the price of gold XAU= added more than 3% to touch its highest level in more than a week.

"Gold hasn't been as defensive (as usual) but that's not necessarily a bad thing in the context of these markets today," Petursson said.

Industrials rose 1.2% and heavily weighted financials ended 1.5% higher.

Shares of Sprott SII.TO jumped 19.8% after the asset manager reported an increase in first-quarter revenue.

Energy .SPTTEN lost 5% as the price of U.S. oil CLc1 settled 7% lower at $95.08 a barrel.

Cenovus Energy CVE.TO posted an 83% jump in first-quarter profit, driven by higher crude prices, strong refining margins and increased production following its acquisition of MEG Energy. Still, its shares fell 4.9%.

Consumer staples lost 2.1%, with shares of Loblaw L.TO down 5.4%. The retailer missed Wall Street estimates for first-quarter revenue as consumers tightened spending amid rising macroeconomic uncertainty.

Some analysts cut their target price on Shopify SHOP.TO, which ended 1.4% lower. It follows a sharp decline for the stock on Tuesday when the e-commerce firm reported quarterly results.

(Reporting by Fergal Smith in Toronto and Tharuniyaa Lakshmi in Bengaluru; Editing by Joyjeet Das, Rod Nickel)

((fergal.smith@thomsonreuters.com; +1 647 480 7446))