Bay Street Looks Headed For Bright Start

The U.S. and Iran agreed to a two-week ceasefire to ensure stability in the Gulf energy corridor, prompting Canadian stocks to look set to open with a strong positive gap. The ceasefire reduces near-term geopolitical risk to energy supply, likely easing oil risk premia and supporting energy-exposed equities and broader market sentiment.

Analysis

The U.S. and Iran agreed to a two-week ceasefire to ensure stability in the Gulf energy corridor, prompting Canadian stocks to look set to open with a strong positive gap. The ceasefire reduces near-term geopolitical risk to energy supply, likely easing oil risk premia and supporting energy-exposed equities and broader market sentiment.