May 26 (Reuters) - Canada's main stock index edged lower on Tuesday after a record high in the previous session, with gold miners leading losses as hopes for a resolution to the Middle East conflict faded following fresh U.S. military strikes in Iran.
At 10:28 a.m. ET, the Toronto Stock Exchange's S&P/TSX composite index (.GSPTSE), was down 0.6% at 34,612.32 points, snapping a four-session winning streak.
Iran said the United States had violated a ceasefire after the U.S. conducted what it called defensive strikes in southern Iran, while Secretary of State Marco Rubio said that negotiating a deal to halt the conflict could "take a few days".
"There's a sense of political exhaustion setting in," said Shiraz Ahmed, founder at Sartorial Wealth. "But Canadian investors are trying to continue with their long-term growth plans like most other environments we've seen in the past."
Heavyweight mining stocks (.GSPTTMT), led losses, down 1.4%, as gold prices slipped on renewed concerns about prolonged inflation and higher-for-longer interest rates.
Nine of 10 sectors on the TSX were in the red, with energy (.SPTTEN), the only gainer, up 0.7%, tracking crude prices, which rose after the renewed strikes fueled uncertainty over when the war would end and shipping through the Strait of Hormuz resume.
Canada's largest banks are set to report quarterly results this week, with profits expected to have risen despite trade tensions, the Middle East conflict and macroeconomic uncertainty, though they face rising risks from weakening consumer finances and a subdued housing market.
Profit for the big six banks is expected to grow between 10% and 25% year-over-year in the quarter ended April 30.
Investors and businesses will also be keen on the first round of formal negotiations of the U.S.-Mexico-Canada free trade deal that is expected to kick off in Mexico on Monday.
"This has been a cloud looming over markets, and I'm expecting intense volatility depending on the outcome," Sartorial Wealth's Ahmed said.
Reporting by Tharuniyaa Lakshmi in Bengaluru; Editing by Diti Pujara
