TSX Futures Muted as Investors Weigh US-Iran Peace Expectations

The S&P/TSX Composite Index edged up to above 34,155 on Wednesday, hitting a fresh six-week high, as investors assessed US-Iran peace efforts. US President Trump indicated a second round of talks could resume soon in Pakistan. Oil prices rose slightly but stayed below recent peaks despite the US maintaining its blockade in the Strait of Hormuz. Also, Canada’s banking regulator said it is reviewing lenders’ exposure to private credit amid growing US market risks. Shopify (+7.99%) and Constellation Software (+4.71%) were among the top performers. Banks also traded higher, with BMO up over 0.5% and the Royal Bank of Canada advancing about 0.37%. Energy stocks were muted as the oil rally cooled, with Canadian Natural and Suncor Energy each edging lower. WPM was also down 0.44% and Agnico Eagle shedding nearly 8.5%.

Futures tracking the S&P/TSX Composite Index were little changed on Wednesday, after the benchmark closed at a six-week high in the previous session, as investors assessed fragile US–Iran peace efforts. US President Trump indicated that a second round of talks could resume in Pakistan soon. Oil prices edged higher but remained below recent highs, even as the US continued to enforce a blockade in the Strait of Hormuz. Meanwhile, Canada’s banking regulator said it is reviewing lenders’ exposure to private credit amid growing concerns about the health of the US market. Energy producers are likely to post more modest gains as the oil rally cools, while gold prices slipped on a firmer US dollar, likely weighing on mining stocks.

The S&P/TSX Composite Index rose 0.66% to close at 34,102 on Tuesday, extending earlier gains after edging above the 34,000 level in early trade and reaching its highest level in nearly six weeks, as optimism over potential US-Iran talks continued to support sentiment. Lower oil prices, driven by easing supply concerns, weighed on the energy sector, while a softer US dollar supported gold and lifted mining stocks. Among gainers, Shopify advanced 2.12%, while Bank of Montreal (+1.31%), CIBC (+1.19%), TD Bank (+0.96%), and Royal Bank of Canada (+0.72%) posted gains after trading flat earlier in the session. Agnico Eagle Mines rose 1.01%. On the downside, energy stocks remained under pressure, with Canadian Natural Resources falling 2.85% and Enbridge down 1.07%, in line with weaker crude prices.