TSX Trades Muted for 2nd Session

Canada's S&P/TSX Composite index inched lower on Tuesday, underperforming US equities due to muted movements for heavyweight commodity producers as markets assessed the prospective for an agreement between Iran and the US. US officials expressed a degree of optimism that talks are due to continue this week despite President Trump's call for no extension to the current ceasefire. Gold producers inched lower after bullion prices retreated, dented by evidence of more room for the US Fed to hold rates following strong labor data by the ADP and retail sales in the US. In the meantime, banks and oil companies were mixed. Finally, Shopify jumped 1% to track the positive momentum for North American companies with exposure to the US.

Futures tracking Canada's S&P/TSX Composite index inched higher on Tuesday, less than 0.5% away from the record high touched March 2nd on the prospective of ample earnings growth despite risks of macroeconomic headwinds. Benchmark crude oil prices maintained their recent pullback despite uncertainty on whether the ongoing ceasefire will remain later this week due to fresh threats by US President Trump. Gold prices were also muted on the uncertain outlook on North American inflation, prompting miners and oil producers to hover near the flatline. Still, tech shares were firmly higher as investors increase their exposure to AI companies, with Shopify hovering in the green premarket.

The S&P/TSX Composite Index finished nearly flat around the 34,360 mark on Monday, as fears of a unraveling US Iran ceasefire and elevated inflation kept markets cautious. The US seized an Iranian vessel, prompting Tehran to retaliate and reimpose its blockade on the Strait of Hormuz, with Iran ruling out further talks before the ceasefire expires April 21. Oil prices surged on renewed shipping disruptions, reigniting stagflation concerns and pressuring banks’ outlook due to higher rates and weak credit demand. Higher credit costs were also owed to the surge in the domestic inflation rate, which rose to 2.4% in March as the Middle East conflict lifted transportation costs. Still, major banks such as TD and BMO held steady. Gold miners fell as US Treasury yields rose, Agnico Eagle lost over 1.9%, and Barrick was down 1.1%. Energy producers rebounded with global oil prices: Canadian Natural and Suncor 0.3% and 0.5% respectively and Cenovus added nearly 1.4%.