PrintCANADA STOCKS-TSX climbs to new peak as markets cheer US-Iran deal
BY Reuters | ECONOMIC | 10:16 AM EDT(Updates prices and details throughout)
* TSX up 0.9%
* Miners lead gains, energy index worst performer
* Canadian housing starts fall 6% in May
By Tharuniyaa Lakshmi
June 15 (Reuters) - Canada's main stock index rose to a record high on Monday as markets cheered a preliminary agreement between Washington and Tehran to end the Iran war and reopen the crucial Strait of Hormuz.
At 10:01 a.m. ET, the Toronto Stock Exchange's S&P/TSX Composite Index was up 0.9% at 35,263.62 points.
* The framework, which is expected to be formally signed in Switzerland on Friday, does not address certain key issues including Iran's nuclear program and the conflict between Israel and Lebanon.
* "I think investors have been waiting for it... it's been dragging on for so many months. It could still go sour given unresolved issues such as the nuclear deal, but I think it will go through. Market participants aren't fully 100% convinced, though I'd say about 90% are there," said Michael Dehal, senior portfolio manager at Dehal Investment Partners at Raymond James.
* The materials index, which includes stocks of
metal miners, led gains on the TSX with a 6.4% rise. G Mining
Ventures Corp
* Seven of the 10 TSX sectors were in the green, with the technology index also up 1.7% on improved sentiment.
* The energy sub-index was the worst performer, falling 4.4% as oil prices tumbled after supply concerns eased following news of the deal.
* Meanwhile, Canadian housing starts fell 6% in May from the previous month, which was a smaller decline than expected, data from the national housing agency showed.
* The leaders of the Group of Seven wealthy nations are due to arrive at a French lakeside resort later on Monday amid unease among allies over U.S. President Donald Trump's tariff threats and questions about Washington's commitment to the global order.
* "I think now the focus will be less on the war and more on these tariffs that Trump's trying to propose again," Dehal said. (Reporting by Tharuniyaa Lakshmi in Bengaluru; Editing by Jonathan Ananda)
