Canadian Stocks Edge Higher Amid Rising Expectations Of U.S.-Iran Peace Deal
(RTTNews) - Extending yesterday's surges, Canadian stocks inched higher on Wednesday supported by a huge surge in the gold-linked materials sector after concerns of near-term U.S. interest rate hikes receded following U.S. President Donald Trump's reassurance on U.S.-Iran agreement to happen anytime soon.
After opening well above yesterday's close, today the benchmark S&P/TSX Composite Index traded firmly positive throughout the session before settling at 36,146.42, up by 344.83 points (or 0.96%).
Notably, the index reached a new high when it hit 36,443.29 earlier in the session before turning lower.
Six of the 11 sectors posted gains today, with the materials sector leading the pack.
Offering the much sought after breather from the tensions that began on February 28 after the U.S.-Iran began, today Trump reassured that negotiations between the U.S. and Iran are moving very nicely and that the Strait of Hormuz could reopen soon.
After the conflict between the two nations began, Iran shut the strategic seaway.
Asserting control over the strait, Iran insisted that ships should travel only after receiving authorization from Iranian military.
Iran conducted strikes on vessels that failed to comply with its demand.
Despite an assurance by the U.S. Central Command for safety of vessels, a majority of shipowners refrained from allowing their ships to sail.
Following the announcement by Trump, the risk premium began to diminish, and crude oil prices declined sharply.
Consequently, oil-linked inflationary pressures lowered and concerns of near-term hike in the interest rates by the U.S. Federal Reserve reduced, offering support to gold prices on the upside.
With equities in the U.S. reaching new highs due to expectations of a cooling in inflation, Canadian market mirrored the trend. IT sector traded above 3%.
On the economic front, there were no significant data releases scheduled for today.
On the business front, Canadian tech sector's bellwether, e-commerce major Shopify (SHOP) presented its Q2 2026 results. Exceeding analysts' estimates of $3.45 billion, the company posted revenue of $3.58 billion, representing 34% growth year over year. Beating estimates of $0.40, the earnings per share came in at $0.42.
Thomson Reuters (TRI) released its Q2 2026 results. The earnings came in at $448 million compared to $313 million of the previous year. The company's revenue rose 9.50% to $1.954 billion from $1.785 billion of last year. Earnings per share stood at $1.02 versus $0.69 of the previous year.
Major sectors that gained in today's trading were Materials (5.63%), IT (2.48%), Consumer Discretionary (1.31%), Real Estate (0.78), and Financials (0.35%).
Among the individual stocks, Eldorado Gold Corporation (12.83%), Perpetua Resources Corp (10.31%), Discovery Mining Ltd (9.67%), Agnico Eagle Mines Limited (9.64%), Avino Silver and Gold Mines Ltd (9.63%), and Shopify Inc (16.47%) were the prominent gainers.
Major sectors that lost in today's trading were Healthcare (0.76%), Consumer Staples (1.46%), Industrials (1.51%), Utilities (1.83%), and Energy (3.03%).
Among the individual stocks, Tamarack Valley Energy Ltd (6.30%), Strathcona Resources Ltd (5.67%), Vermilion Energy Inc (4.58%), Athabasca Oil Corp (4.47%), AltaGas Ltd (4.70%), and Superior Plus Corp (3.94%) were the notable losers.
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
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