Canadian Stocks Set to Open Lower

The S&P/TSX Composite Index gained 0.5% to trade near 36,000 on Tuesday, as lower oil prices offered some relief to credit-sensitive stocks. Crude prices declined after US President Trump announced that the US would end its financial support for Israel by year-end, while Iranian officials signaled openness to diplomacy. Banks, which had been under pressure from inflation concerns stemming from the oil rally, rose. RBC, BMO and National Bank each rose about 1%, while TD Bank added 0.5%. Miners gained despite subdued gold prices, with Agnico Eagle, Barrick and WPM rising around 3% each, while Franco-Nevada advanced 2%. Elsewhere, Topaz Energy fell 4% despite reporting better-than-expected adjusted third-quarter profit. Toromont slipped 0.2% despite beating quarterly revenue estimates. Meanwhile, Fairfax Financial’s (-0.4%) proposed takeover of IDBI Bank is facing opposition from employees and political parties over the lender’s valuation and the Indian government’s stake-sale process.

Futures tracking Canada's benchmark stock index fell 0.4% on Tuesday, nearly erasing the previous session's gains and reflecting a cautious mood across global equity markets. Investors remained focused on the US midterm elections, while oil prices resumed their upward momentum and gold extended its decline. On the earnings front, Topaz Energy reported better-than-expected adjusted third-quarter profit, while Toromont Industries beat quarterly revenue estimates. Meanwhile, Fairfax Financial Holdings' proposed $5.5 billion takeover of IDBI Bank is facing opposition from employees and political parties over the lender's valuation and the Indian government's stake-sale process.

Canada’s S&P/TSX Composite Index rose 0.5% to 35,801 points on Monday, partially recovering from Friday’s steepest single-day decline in nearly six months, helped by gains in financials, materials and industrials while the energy sector tumbled. Gold prices rose while oil prices decreased more than 7% amid hopes for a diplomatic solution to the conflict between the US and Iran. On the trade front, US President Trump said his administration had established a framework for a new trade agreement with Canada, while Prime Minister Mark Carney characterized the discussions as constructive. Royal Bank of Canada rose 0.8% and Bank of Montreal added 1.1% while Canadian Natural Resources fell 4.2%.