Canada Stocks: TSX snaps three-day losing streak as mining stocks rise
CANADA STOCKS-TSX snaps three-day losing streak as mining stocks rise Updates at market close
By Fergal Smith
June 22 (Reuters) - Canada's main stock index rose on Monday, led by metal mining shares, as investors assessed fragile U.S.-Iran peace talks and hotter-than-expected domestic inflation data.
The Toronto Stock Exchange's S&P/TSX Composite Index .GSPTSE ended up 144.84 points, or 0.4%, at 35,002.18 after three straight days of declines.
The U.S. waived sanctions on Iran for 60 days from Monday after the first talks under a nascent peace deal, and officials reported calm in Lebanon after fighting that had prompted Iran to declare the Strait of Hormuz closed.
"Markets could see heightened volatility during the (peace talks) process as this won’t be a simple handshake to get it done,” said Russ Mould, investment director at AJ Bell.
Canada's annual inflation rate in May accelerated to 3.2%, a 29-month high. That was above the 3% rate economists had forecast but measures of underlying inflation closely followed by the Bank of Canada were more muted.
The materials group .GSPTTMT, which includes metal mining shares, rose 1.4% as gold XAU= rebounded from its lowest level in more than a week. Shares of Wheaton Precious Metals Corp WPM.TO added 4.7%.
The price of oil CLc1 settled 2.3% lower at $74.82 a barrel. Still, energy .SPTTEN clawed back some recent declines for a second straight day, adding 1.1%.
Industrials .GSPTTIN rose 0.2% and heavily weighted financials .SPTTFS ended 0.3% higher.
Canada's banking regulator lowered capital requirements last week for the country's biggest banks for the first time in three years, a move that will allow them to lend more.
The TSX was on course for a second-quarter gain of 6.8%, which would be its eighth straight quarterly advance.
Five of 10 major sectors ended lower on Monday, including technology .SPTTTK and consumer discretionary .GSPTTCD, which lost 0.6% and 0.8% respectively.
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(Reporting by Fergal Smith in Toronto and Medha Singh in Bengaluru; Editing by Jonathan Ananda and Mark Porter)
((fergal.smith@thomsonreuters.com; +1 647 480 7446))