TSX Futures Edge Lower as Iran Rejects US Ceasefire Proposal

The S&P/TSX Composite Index dropped around 0.2% to below the 33,100 mark on Tuesday as investors parsed Iran's counterproposal to a US-mediated ceasefire. Markets reacted to Tehran's rejection of an immediate reopening of the Strait of Hormuz in favor of a ten-point protocol that includes lifting economic sanctions and ending regional hostilities. Strong upward pressure from the energy sector partially mitigated broader losses as Canadian Natural Resources climbed 2.5% and Suncor Energy rose 2% amid crude prices hitting 2022 highs. Conversely financial heavyweights struggled with Scotiabank sliding 1.4% and BMO falling 0.7% as rising bond yields fueled stagflation concerns and dampened credit demand. Tech stocks also faced headwinds with Shopify declining 1.4% and Constellation Software dropping 0.9% while Celestica bucked the trend with a 3% gain.

Futures tracking the S&P/TSX Composite Index edged lower on Tuesday as investors weighed Middle East developments. Iran rejected the US proposal for an immediate ceasefire and Strait of Hormuz reopening ahead of President Donald Trump's deadline, instead proposing 10 clauses including an end to regional conflict, a safe passage protocol, and lifting of economic sanctions. Crude oil prices continued to rise, fueling stagflation fears and lifting bond yields, which pressured financial stocks amid credit demand concerns. In contrast, the oil surge this month supported energy producers. In other news, Canada's Ivey Purchasing Managers Index for March is scheduled for release later in the session, with forecasts pointing to slower expansion compared to February.

The S&P/TSX Composite Index climbed 0.2% to close at 33,182 on Monday as investors cautiously monitored potential breakthroughs in a Pakistan-brokered peace proposal for the Middle East. Financial heavyweights provided the primary upward momentum with RBC advancing 0.7%, TD Bank rising 0.7%, BMO adding 0.8% and CIBC gaining 0.9%. Energy producers displayed divergent performance as Canadian Natural Resources climbed 1.6% while Imperial Oil and Enbridge fell 0.8% each. Mining stocks also traded with mixed results as Agnico Eagle Mines edged higher, but Barrick Gold tumbled 1.4% and Cameco dropped 1.8%. Domestically S&P Global data showed Canada’s Composite PMI recorded 47.6 in March remaining in contraction for a fifth straight month as the Middle East conflict weighed on demand.