CANADA STOCKS-TSX gains on industrials, consumer strength amid Mideast war overhang

By Rashika Singh and Ragini Mathur

March 26 (Reuters) - Industrials and consumer stocks lifted Canada's benchmark index on Thursday, even as investors remained cautious amid mixed signals from the U.S. and Iran over the Middle East conflict.

At 10:30 a.m. ET, the Toronto Stock Exchange's S&P/TSX composite index .GSPTSE was up 0.3% at 32,437.37.

The index was on track for a fourth straight session of gains with eight of the 11 major sectors trading in the green despite lingering uncertainty over the war.

Heavyweight industrials .GSPTTIN rose 0.5%, while consumer staples .GSPTTCS and consumer discretionary .GSPTTCD were up 0.7% and 0.5%, respectively.

U.S. President ​Donald Trump warned Tehran on Thursday to "get serious" about a deal to end nearly four weeks of fighting, after the Iranian foreign minister said his country was reviewing Washington's proposal but that there were no talks on winding down the war.

Oil rose more than 4% as the contradictory signals kept global markets on edge, with prospects for restoring flows through the key Strait of Hormuz still unclear. O/R

The rise in crude pushed Canadian energy shares .SPTTEN up 0.6%.

The materials sector  .GSPTTMT was flat after opening lower as gold retreated against a firmer U.S. dollar and on expectations of elevated interest rates on supply disruptions. GOL/

"It's a headline-driven market and the conviction is pretty weak," said Michael Dehal, a senior portfolio manager at Dehal Investment Partners at Raymond James.

"But amidst all this volatility, there are green shoots where we are seeing opportunities and I think gold for a long-term looks [like a] pretty good opportunity considering the fundamentals are still intact," he said.

Meanwhile, NATO's European allies and Canada increased defence spending by 20% in 2025 compared to the previous year, alliance chief Mark Rutte said in his annual report. Canada also plans to pitch a defence bank to the G7 to support small- and mid-sized defense suppliers that struggle to secure financing, Foreign Minister Anita Anand told Reuters.

Cogeco Communications CCA.TO fell 6.5% after TD Cowen downgraded it to "hold" from "buy".