The S&P/TSX Composite Index edged down to trade below 34,000 on Monday as stalled US-Iran peace talks dampened risk appetite ahead of a busy week of central bank meetings, including the Bank of Canada. Oil prices rose as shipments through the Strait of Hormuz remained limited, keeping global supplies tight. The Bank of Canada and US Federal Reserve are set to announce policy decisions on Wednesday. Markets expect the BoC to hold rates, but persistent geopolitical risks, oil shocks, and energy-driven stagflation fears, alongside higher bond yields and concerns over weaker credit demand, have raised speculation of a hawkish stance later this year. This outlook pressured banking stocks and the broader index. BMO shed 0.5%, TD lost 0.2%, and the Royal Bank of Canada edged down. Fairfax Financial lost 0.4% ahead of its earnings report. Energy producers traded higher, with Canadian Natural up 0.7% and Suncor adding 0.5% as oil prices extended gains amid supply worries.
