TSX Edges Higher on Energy Producers

The S&P/TSX Composite Index edged 0.2% higher to close at 33,197 on Tuesday as energy sector gains offset broader weakness ahead of a critical geopolitical deadline. Gains were led by Imperial Oil which climbed 2.3% and Canadian Natural Resources which rose 1.5% as crude futures rose following US military strikes on Iranian targets. Financial heavyweights showed resilience with RBC gaining 0.5% and TD Bank adding 1.1% even as Scotiabank slipped 0.6% amid persistent stagflation concerns. Tech stocks remained a primary drag on the index as Shopify fell 1.4% and Constellation Software dropped 2.6%. Consumer discretionary and telecommunications shares also faced pressure with Rogers Communications sliding 3.5% and Alimentation Couche-Tard declining 0.9% as investors parsed the implications of Tehran rejecting a US-mediated 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.