TSX Gains as Dovish BoC Bets Offset Middle East Risks

The S&P/TSX Composite gained 0.6% to close at 34,078 on Friday, as investors assessed the North American labor backdrop and the outlook for Middle East energy supply. Although clashes continued and attacks on the UAE renewed tensions near the Strait of Hormuz, the US is still awaiting Iran’s response to its proposal to end the conflict, keeping oil prices elevated. Meanwhile, the unexpected decline in Canadian employment reinforced expectations that the Bank of Canada will refrain from raising interest rates this year, supporting equities and bank stocks. BMO and Royal Bank of Canada both gained 0.5%. On the earnings front, Enbridge (-0.5%) and Wheaton Precious Metals (+5.7%) both reported results above expectations. Cardinal Energy (+1.4%) posted higher first-quarter revenue on record production, while Emera (+1.1%) reported adjusted EPS above forecasts. Rogers Sugar (+0.3%), however, posted weaker-than-expected second-quarter revenue.

The S&P/TSX Composite gained more than 0.5% to trade above 34,000 on Friday, as investors assessed the North American labor backdrop and the outlook for Middle East energy supply. Although clashes continued and attacks on the UAE renewed tensions near the Strait of Hormuz, the US is still awaiting Iran’s response to its proposal to end the conflict, keeping oil prices elevated. Meanwhile, the unexpected decline in Canadian employment reinforced expectations that the Bank of Canada will refrain from raising interest rates this year. Most banks traded higher, with BMO up more than 1% and Canadian Imperial Bank advancing nearly 1%. On the earnings front, Enbridge (-0.1%) and Wheaton Precious Metals (+4.1%) both reported results above expectations. Cardinal Energy (-0.5%) posted higher first-quarter revenue on record production, while Emera (+1.4%) reported adjusted EPS above forecasts. Rogers Sugar (+1.7%), however, posted weaker-than-expected second-quarter revenue.

Futures tracking the S&P/TSX Composite were higher on Friday as markets assessed the North American labor backdrop and the outlook of energy supply from the Middle East. Although clashes continued and attacks on the UAE renewed tensions near the Strait of Hormuz, the US is still awaiting Iran’s response to its proposal to end the conflict, underpinning oil prices at elevated levels. Still, the unexpected drop in Canadian employment consolidated bets that the BoC will refrain from hiking interest rates this year. On the earnings front, Enbridge and Wheaton Precious Metals both reported results above expectations. Cardinal Energy posted higher first-quarter revenue on record production. Emera’s adjusted EPS also topped forecasts. In contrast, Rogers Sugar reported weaker-than-expected second-quarter revenue.