TSX Futures Muted as Markets Eye Iran Talks

The S&P/TSX Composite Index was little changed near the 36,000 mark on Thursday following a record close, amid uncertain prospects of a US-Iran peace deal and another round of corporate earnings. Oil prices rose as markets remained cautious over the Iran-Oman talks after traffic through the Strait of Hormuz and the Bab el-Mandeb Strait declined following Houthi claims of a missile attack on a oil tanker. Higher oil prices pushed bond yields higher. Credit-sensitive stocks traded near the flatline. Canadian Natural (+1.5%) gained after beating second-quarter profit estimates, supported by stronger oil and natural gas prices. Lundin Mining fell nearly 1.5% despite reporting higher second-quarter revenue. WPM (+0.5%) and Sun Life Financial (+0.3%) are set to report earnings after the close. Shopify gained 0.5% after at least six brokerages raised their price targets. Celestica plunged 13% after pricing a common share offering at a significant discount to the previous session's close.

Futures tracking the S&P/TSX Composite Index were little changed on Thursday as investors weighed the prospects of a US-Iran peace deal alongside another round of corporate earnings. Oil prices rose as markets remained cautious over the Iran-Oman talks. Traffic through the Strait of Hormuz and the Bab el-Mandeb Strait fell on Wednesday following Houthi claims of a missile attack on a Saudi oil tanker. Higher oil prices pushed bond yields up, pressuring financial stocks and the broader index. Meanwhile, Canadian Natural beat second-quarter profit estimates, supported by stronger oil and natural gas prices. Lundin Mining reported higher second-quarter revenue late Wednesday. WPM and Sun Life Financial are set to report earnings after the close. At least six brokerages also raised their price targets for Shopify after the company projected third-quarter revenue above expectations.

The S&P/TSX Composite Index rose 1% to close at a record 36,146 on Wednesday, marking its second consecutive record close. Shopify led gains, soaring 16.5% for its biggest one-day advance in a year after issuing an upbeat revenue outlook that signaled its AI initiatives were attracting more merchants to its e-commerce platform. Mining stocks also rallied as gold prices surged on hopes of a US-Iran peace deal, easing inflation concerns. Agnico Eagle jumped 9.6%, Barrick gained 7.2%, WPM rose 7.2%, Kinross advanced 8.6%, and Eldorado Gold climbed 12.8%, while other miners gained between 1.2% and 10%. Meanwhile, Thomson Reuters fell 10.2% despite beating second-quarter profit and revenue estimates and raising its annual revenue growth forecast. Manulife Financial (-0.9%) and Nutrien (-0.3%) edged lower ahead of their earnings.