The main stock index in Canada advanced on Wednesday, with the technology and finance sectors leading the way, as optimism about the potential resumption of peace talks in the Middle East continues to support investor sentiment.
At 10:30 a.m. ET, the S&P/TSX composite index was up 0.3% at 34,223.89 points, in line with gains on Wall Street. It had closed the previous session at a six-week high.
U.S. President Donald Trump said the war with Iran could end soon, urging the world to expect “two incredible days” as American forces imposed a blockade on Iranian ports.
“The markets are relying on developments regarding Iran… but Canada’s strong exposure to oil means that weakness in oil prices limits the extent of the rebound,” said Brian Madden, Chief Investment Officer at First Avenue Investment Counsel.
Technology stocks rose by 2.2% on the TSX, with Shopify among the biggest gainers with a 7.6% jump. The financial sector, a heavyweight on the exchange, rose by 0.6%.
The energy sector also gained 0.1%, as oil prices stabilized after a sharp drop in the previous session. [O/R]
On the regulatory front, the Canadian banking regulator indicated that it was examining lenders’ exposure to private credit, amid growing concerns about the health of this market in the United States.
Corporate earnings results in the U.S. and Canada are also closely watched, as investors seek clues on how companies are coping with headwinds related to the Iran war.
In notable movements, BRP plunged by 39.9% to its lowest level since August, after the boat manufacturer suspended its forecasts, a decision followed by downgrades from at least three brokers.
The stock weighed on the consumer discretionary sector, which declined by 1.8%.
