Canada’s blue-chip stocks officially rose on Friday as a deal to prolong the US-Iran ceasefire renewed hopes for an end to the Middle East conflict while investors awaited domestic output figures due to be released later.
As reported by Reuters, the United States and Iran mutually agreed to extend their ceasefire and ease rules on shipping through the Strait of Hormuz.
On Friday, oil prices dropped 1.6% on Friday, putting them on track to register their third consecutive session of drops.
The data released on Thursday demonstrated that US inflation increased steadily in three years in April, fueled by soaring utility costs.
At present, markets are pricing in a 97% chance that the Bank of Canada will retain interest rates unchanged at its June meeting.
The Canadian central bank clarified that the domestic financial conditions are stable, but vulnerabilities are continuing to rise.
It is pertinent to mention that the country’s benchmark S&P/TSX Composite Index and the large-cap S&P/TSX 60 index are ready to achieve their second straight month of gains.
The geopolitical optimism could provide a steady cushion for Canadian equities, helping them to maintain positive momentum as investors look forward to domestic growth and corporate earnings.
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