Bay Street May Open With Slightly Positive Bias

Reports that the U.S. and Iran are engaged in indirect talks exploring a potential 45-day truce are prompting a slightly positive bias for Canadian markets at the open. This could modestly reduce geopolitical risk premia and support energy and risk assets; monitor oil, regional risk sentiment and FX for potential ~1-3% directional moves in the near term.

Analysis

Reports that the U.S. and Iran are engaged in indirect talks exploring a potential 45-day truce are prompting a slightly positive bias for Canadian markets at the open. This could modestly reduce geopolitical risk premia and support energy and risk assets; monitor oil, regional risk sentiment and FX for potential ~1-3% directional moves in the near term.