TSX Futures Rise on US-Iran Deal Hopes

The S&P/TSX Composite Index edged up to trade close to the 35,000 mark, approaching record levels, amid renewed optimism over US-Iran diplomacy. According to senior officials, the two countries may sign an agreement to reopen the Strait of Hormuz on the sidelines of next week’s G7 summit. Oil prices eased, reducing inflation concerns and reducing expectations of monetary tightening, supporting financial stocks and the broader market. RBC gained over 0.5%, while TD Bank and BMO advanced about 1%. Mining stocks also traded higher despite lower gold prices, with Agnico Eagle and WPM up nearly 1%. Industrial and infrastructure names posted gains, with TC Energy rising more than 0.5%. In contrast, energy stocks retreated, with Imperial Oil losing more than 0.5%. Shopify shed over 2%, tracking weakness in US technology stocks.

Futures tracking the S&P/TSX Composite Index edged higher on Friday amid renewed optimism over US-Iran diplomacy. According to senior officials, the US and Iran may sign an agreement to reopen the Strait of Hormuz on the sidelines of next week’s G7 summit. Oil prices fell below $90 per barrel, easing inflation concerns and reducing expectations of monetary tightening, supporting financial stocks and the broader market. Meanwhile, lower gold prices pressured mining shares. Also, Prime Minister Mark Carney said on Thursday that Canada will invest more than C$1 billion to promote competition among grocers and food processors in an effort to curb elevated food inflation.

The S&P/TSX Composite Index gained 1.5% to close at 34,671 on Thursday after US President Donald Trump withdrew threats of military strikes against Iran, easing geopolitical concerns. The reversal came just hours before the strikes were expected to take place, as negotiations with Iran reportedly advanced to the highest levels of the country's leadership and received backing from a broad coalition of regional powers. Oil prices fell on the news, easing inflation concerns and pushing bond yields lower. Financial stocks advanced, with TD Bank rising 1.6%. Mining shares also gained as gold prices moved higher, with Agnico Eagle up 3.5% and Barrick adding 5.3%. Technology stocks were supported by a rebound in semiconductor shares following recent weakness in the sector, with Shopify gaining 2.2% and Celestica surging 6.1%. Meanwhile, Dollarama jumped 9% after reporting quarterly sales and earnings that exceeded expectations.