Canada's main stock index rose on Monday, lifted by energy shares as oil prices jumped after the U.S. announced a blockade of Iranian ports following the failure of peace talks, ?while the technology sector also recorded gains.
The TSX Composite Index recovered 37.35 points to move into lunch hour at 33,733.11.
The Canadian dollar recovered 0.33 cents at 72.41 cents U.S.
The U.S. military said it would begin a blockade of all maritime traffic entering or leaving Iran after weekend talks failed to result in a peace deal, while Tehran threatened to retaliate against the ports of its Gulf neighbors.
U.S. President Donald Trump said on Sunday that U.S. forces would also intercept every vessel in international waters that had paid a toll to Iran.
Meanwhile, waste management company GFL Environmental is nearing a ?deal to buy Secure Waste Infrastructure in a $6-billion deal Bloomberg News reported on Monday.
GFL shares weakened $4.84, or 8.1%, to $54.78, while those for Secure soared $1.49, or 7%, to $22.85.
BP has agreed to buy interest ?in three offshore exploration blocks ?in Namibia from Canada's Eco Atlantic Oil & Gas. Eco Atlantic shares popped 16 cents, or 15.7%, to $1.18.
On the economic beat, the total value of building permits issued in Canada decreased in February by $1.1 billion (-8.4%) to reach $12.1 billion.
ON BAYSTREET
The TSX Venture Exchange refreshed 10.65 points, or 1.1%, midday to 1,002.87
Still, eight of the 12 TSX subgroups were in the red, weighed most by consumer staples, down 2.1%, gold, off 1.7%, and materials, trailing 0.9%.
The four gainers were led by information technology, ahead 3.1%, energy, improving 1.5%, and telecoms, advancing 0.9%.
ON WALLSTREET
The S&P 500 was relatively unchanged on Monday as investors hoped that a deal would eventually be struck between the U.S. and Iran.
The Dow Jones Industrials fell 255.56 points to 47,661.01.
The broader index poked up, however, 7.51 points to 6,824.40.
The NASDAQ added 81.82 points to 22,984.72.
While technology names offered a boost to the broader market, with software stocks such as Oracle and Palantir Technologies rising 8% and 3%, respectively, Goldman Sachs was a sore spot in the session. That stock was down 3% despite the bank’s strong overall earnings after it recorded disappointing trading results in its fixed income unit.
The moves come after President Donald Trump announced a blockade of the Strait of Hormuz, with peace talks between the U.S. and Iran over the weekend ending without a deal.
The blockade of all maritime traffic in and out of Iran’s ports went into effect Monday. U.S. Central Command said the U.S. will not block vessels using the strait to get to non-Iranian ports.
The breakdown of negotiations in Islamabad reignited worries that the Iran war will last longer than feared, leading to higher oil prices that will continue to strain economies worldwide.
Vice President J.D. Vance left Islamabad without a deal with his Iranian counterparts, citing their unwillingness to stop the pursuit of nuclear weapons. But both sides appear farther apart than just that issue, with Iran demanding control of the Strait of Hormuz, war reparations and the release of frozen assets.
Mediators from Pakistan, Egypt and Turkey will continue talks with the two nations over the coming days, Axios reported, citing a regional source and a U.S. official.
Prices for the 10-year Treasury were lower, bringing yields to 4.33% from last week’s 4.32%. Treasury prices and yields move in opposite directions.
Oil prices climbed $6.02 to $102.59 U.S. a barrel.
Gold prices dulled $60.30 to $4,727.10 U.S. an ounce.
