The S&P/TSX Composite Index moved higher on Monday as gains in technology stocks outweighed weakness in energy shares following a sharp drop in oil prices.
The index closed up 199.04 points, or 0.56%, at 35,568.14, with mixed sectors. Information Technology led gainers, up 6.85%, while Energy led decliners, down 2.9%.
In commodities, Gold rose on Monday, edging higher as the dollar and Treasury yields eased. The precious metal was last seen up $13.20, or 0.3%, to $4,084.00 per ounce.
Meanwhile, oil traded sharply lower on Monday as the US and Iran paused fighting over the weekend, reviving hopes the pair will reach a peace deal. West Texas Intermediate crude oil for September delivery closed down $6.70, or 7.5%, at $82.61 per barrel, while September Brent oil was down $8.76, or 9.1%, at $88.02.
On the economic front, the Bank of Canada released fresh survey results on market expectations for interest rates, growth and inflation.
The BoC's second-quarter Market Participants Survey, released Monday, showed financial markets expect a 25-basis-point interest-rate increase, with the policy rate seen reaching 2.5% by March 2027.
The survey, conducted from June 11 to 18 among 26 market participants, also pointed to a weaker economic growth outlook. The median forecast for 2026 gross domestic product growth was lowered to 1.3% from 1.6% in the first-quarter survey, while the 2027 forecast remained unchanged at 1.9%. Inflation expectations were broadly steady.
Separately, investors will also be watching this week's release of Canada's May GDP data, with National Bank expecting the economy to expand 0.1% month over month after a 0.5% increase in April. Statistics Canada will release GDP for May and preliminary June data on Friday.
Additionally, TD Economics said in a report on Monday that Alberta's proposed West Coast oil pipeline has entered a more concrete stage, with the province aiming to secure designation as a project of national interest by Oct. 1.
With planned capacity of about 1 million barrels per day, the pipeline would increase Canada's crude export capacity by nearly 20%, improve access to Asian markets and support stronger pricing for Canadian oil, TD added.
Attention also remained on the evolving US-Canada trade dispute, with economists offering differing views on its economic impact.
The Canadian economy has demonstrated resilience despite mounting trade uncertainty as the US moves forward with new tariff measures, according to TD. Unlike the broad tariff measures announced in 2025, last week's tariffs appear targeted at pressuring Canadian producers while limiting the impact on US consumers and manufacturers, with no exemption for USMCA-compliant goods, said the bank.
While KPMG Canada noted that last week's US tariff threat marks a setback, with broad implications across Canadian provinces and industries, particularly in Ontario, Quebec, and British Columbia.
However, while the measures appear more substantial than previous announcements, their overall economic impact is likely to remain manageable, said KPMG Canada in its late Friday note. "Not good news, but the Canadian economy isn't going to break under these tariffs," wrote Ali Jaffery, chief economist at KPMG Canada.