TSX Futures Steady as Oil Stabilizes

The S&P/TSX Composite Index rose to a record above 36,500, with support from heavyweight banks. Oil prices trimmed earlier losses after a spokesperson for Qatar’s foreign ministry said negotiations between Oman and Iran were at an advanced stage, offering some hope of progress toward an agreement. Financials traded higher, with TD Bank, BMO, CIBC and Scotiabank up about 1% each, while Brookfield gained more than 2%. Markets are now turning to Wednesday’s US consumer price index for July, which is expected to provide fresh clues on the Federal Reserve’s policy outlook. Meanwhile, expectations of a hawkish Bank of Canada remained after strong domestic labor data released last week. Among miners, Franco-Nevada (+0.2%) was in focus ahead of its earnings report after the bell, while investors continued to digest Barrick’s (-1%) results from Tuesday. In tech, Shopify shed more than 1%, while Constellation Software edged lower ahead of its earnings report.

Futures tracking Canadian stocks were little changed on Tuesday after a record in the previous session, as energy prices held off from rebounding further. Oil prices traded near flat after a spokesperson for Qatar’s foreign ministry said negotiations between Oman and Iran were at an advanced stage, offering some hope of progress toward an agreement. Markets are now turning to Wednesday’s US consumer price index for July, which is expected to provide fresh clues on the Federal Reserve’s policy outlook. Risks of a hawkish BoC remained after the strong domestic labor data released last week. Meanwhile, Franco Nevada took the spotlight among the miners ahead of its earnings after the bell, while markets continued to digest Barrick's earnings report yesterday.

The S&P/TSX Composite Index added 0.2% to close at 36,458 on Monday, reaching another record high as energy and technology stocks advanced. Crude oil rallied amid growing uncertainty over a deal between the US and Iran to end the conflict and reopen the Strait of Hormuz. US President Donald Trump criticized Iran's demands for war compensation, while Tehran said Washington must lift its blockade before agreeing to fully reopen the waterway. Energy producers led gains, with Canadian Natural up 3.7%, Suncor advancing 4.3%, Imperial Oil adding 3%, and Cenovus jumping 4.6%. Technology stocks tracked gains in US hyperscalers after brokers signaled strong cloud demand. Shopify rose 2.2%, while Constellation Software gained 2.6% ahead of its earnings tomorrow. Miners were mixed, with Barrick down 6.4% after disappointing second-quarter results, while Franco-Nevada gained 0.8% ahead of its earnings tomorrow.