TSX Futures Edge Down on Expectations of a Hawkish Fed

The S&P/TSX Composite Index fell more than 0.5% to trade below 34,500 on Wednesday amid expectations of restrictive monetary policy and high energy prices. The stalling of US-Iran peace talks this week reduced expectations for a reopening of the Strait of Hormuz. Concerns over broader stagflation pressures and higher bond yields continued to weigh on banks and the broader market. BMO and the Royal Bank of Canada shed near 0.5%. Meanwhile, gold prices extended declines after higher-than-expected US producer prices reinforced expectations of tighter Federal Reserve policy, pressuring mining stocks. Agnico Eagle and Barrick were down nealy 2%. In other news, Equinox Gold lost near 5% after it announced plans to acquire Orla Mining (-2%) in a deal that would create a North America-focused gold producer with an implied market value of roughly $18.5 billion. Boyd Group gained near 1% after it reported a 28% increase in first-quarter sales, though results slightly missed forecasts.

Futures tracking the S&P/TSX Composite Index edged lower on Wednesday amid expectations of restrictive monetary policy and high energy prices. The stalling of US-Iran peace talks this week reduced expectations for a reopening of the Strait of Hormuz. Concerns over broader stagflation pressures and higher bond yields continued to weigh on banks and the broader market. Meanwhile, gold prices extended declines after higher-than-expected US producer prices reinforced expectations of tighter Federal Reserve policy, pressuring mining stocks. In other news, Equinox Gold announced plans to acquire Orla Mining in a deal that would create a North America-focused gold producer with an implied market value of roughly $18.5 billion. Boyd Group reported a 28% increase in first-quarter sales, though results slightly missed analyst forecasts

The S&P/TSX Composite Index rose 0.4% to close at 34,291 on Tuesday, supported by gains in energy and banking stocks. Oil prices advanced after renewed disagreements between Iran and the US over a proposed peace framework revived supply concerns. Canadian Natural climbed 4.1%, while Imperial Oil gained 2.6% and Cenovus Energy added 3.2%. Banks also traded higher, with Royal Bank of Canada up 1.0% and TD Bank gaining 0.8%, offsetting declines in BMO (-0.2%) and Brookfield (-0.5%). BMO also agreed to sell its transportation and vendor finance businesses to Stonepeak. Meanwhile, gold prices weakened as a stronger US dollar clouded the outlook for US interest rates. Barrick fell 2.4%, while Wheaton Precious Metals lost 0.5%. Elsewhere, Chemtrade Logistics dropped 9.8% after weak quarterly results, while Organigram plunged 14.4% on weaker net revenue. Constellation Software (0.4%) and Franco-Nevada (-0.2%) are set to release Q1 2026 earnings after the close.