TSX Gains on Hopes for US-Iran Agreement

The S&P/TSX Composite Index gained 0.8% to close at 34,938 on Friday amid renewed optimism over US-Iran diplomacy. Reports indicated that a US-Iran memorandum could be signed as early as Sunday. Oil prices eased, reducing inflation concerns and diminishing expectations of further monetary tightening, supporting financial stocks and the broader market. TD Bank added 1.1%, while BMO rose 1.2%. Mining stocks also advanced despite lower gold prices, with Agnico Eagle gaining 3.4%, Barrick rising 3.3%, and WPM adding 3.5%. Meanwhile, technology shares traded mixed following SpaceX's market debut. Shopify fell 1.8%, while Celestica posted gains as investor optimism around AI-related stocks persisted.

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.