Canada's main stock index dipped on Tuesday as metal miners came under pressure for a second day, but the benchmark was on course for an eighth straight quarter of gains helped by a resilient economy and easing geopolitical tensions.
The Toronto Stock Exchange's S&P/TSX Composite Index TSX:TSX was down 0.1% by 10:08 a.m. ET, still on track to register its longest quarterly winning streak since January 1995-October 1996.
The benchmark index was poised for a 6.3% gain in the second quarter of the year, lagging behind U.S. peer S&P 500 CBOE:SPX, which is on track for a 14% gain.
"The Canadian market, for the most part, has been largely earnings driven," said Angelo Kourkafas, senior global investment strategist at Edward Jones Investments.
"It has lagged U.S. and some other indices because of its commodities tilt. But markets are ready to enter a new quarter from a solid footing."
The rally in oil prices due to the Middle East conflict helped Canada's energy index TSX:TTEN outperform other sectors with a 25% jump this year.
But crude prices have retreated sharply in recent weeks on signs of progress in ending the conflict, weighing on Canada's commodity-heavy stock index. Brent crude ICEEUR:BRN1! prices edged up to $73.29 on Tuesday.
Gold miners, part of the broader basic materials index which has a 16% weight in the TSX, came under pressure as spot gold prices headed for their worst quarter since 2013.
Investors will keep a close eye on U.S. economic data this week, including the June non-farm payrolls report, for clues on the Federal Reserve's monetary policy path.
Canada's economy rebounded more than expected in April, data showed, following a slight contraction in the previous month.
U.S. President Donald Trump's administration is expected to formally declare on Wednesday that it will not extend the U.S.-Mexico-Canada Agreement (USMCA) on trade, starting a decade-long clock to wind down the 32-year-old North American free trade zone as the three countries haggle over proposed changes.