TSX Dips Amid US Rate Hike Bets and Oil Price Surge

The Toronto Stock Exchange (TSX) opened lower on Monday, with investors weighing rising expectations for a U.S. interest-rate hike against a surge in oil prices.

Oil prices jumped nearly 3% to above $90 a barrel after U.S. air strikes on Iranian rocket launchers and retaliatory strikes on U.S. positions in Jordan.

The energy sector could provide support, with Toronto-listed energy producers benefiting from the increased oil prices.

Markets are pricing in nearly 75 basis points of Bank of Canada rate increases over the next 12 months, reflecting a shift toward a tighter policy outlook.

The central bank's decision on Wednesday is expected to leave the benchmark rate unchanged at 2.25% for a seventh consecutive meeting.