TSX Rises as US Extends Iran Ceasefire Indefinitely

The S&P/TSX Composite Index rose nearly 1% to trade above 34,000 on Wednesday after President Trump extended the ceasefire with Iran indefinitely, agreeing to a request by mediators to hold off until Iranian leaders present a unified proposal. Although oil prices climbed following gunfire attacks on container ships in the Strait of Hormuz, the rally slowed, easing fears of stagflation and rate hikes, lifting pressure off banks. Bond yields fell, alleviating concerns over weak credit demand. BMO and the Royal Bank of Canada both edged up. Energy producers posted smaller gains as the oil rally cooled, with Canadian Natural and Suncor edging up. Gold rose on the ceasefire extension to support miners; Agnico Eagle and Barrick advanced over 1%, and WPM was up more than 2%. After the bell, Waste Connections (+0.1%) will report earnings. On the trade front, Canada's negotiator to the US said resolving all outstanding issues under the North American trade pact by July was unlikely.

Futures tracking the S&P/TSX Composite Index rose on Wednesday after President Trump extended the ceasefire with Iran indefinitely. Trump said the US had agreed to a request by Pakistani mediators to hold off on military action until Iranian leaders can present a unified proposal. Oil prices climbed following reports of gunfire attacks on container ships in the Strait of Hormuz. A more modest pace than recent rallies, easing fears of generalised stagflation and rate hikes and lifting pressure off financial stocks, while Canadian bond yields fell, further alleviating concerns over weak credit demand. Meanwhile, energy producers are set to post smaller gains as the oil rally cools, while gold rose on the ceasefire extension, supporting miners. In other news, Waste Connections will report earnings after the bell. On the trade front, Canada's chief negotiator to the US said resolving all outstanding issues under the North American trade pact by the July 1 review deadline was unlikely.

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.