S&P/TSX Composite Index: A Cautious Start to the Trading Week

Global markets exhibited caution at the opening of trading following heightened geopolitical tensions. U.S. President Donald Trump’s strong warning to Iran regarding the Strait of Hormuz initially rattled investors, but reports of potential ceasefire talks offered a slight reprieve. This backdrop created a mixed sentiment in Wall Street futures, with TSX futures showing a modest increase.

Geopolitical Tensions and Market Reaction

“The markets are understandably nervous,” noted Sim Moh Siong, a currency strategist at OCBC in Singapore. “We’ve seen numerous deadlines extended in the past, making it difficult to gauge the credibility of this one. While there was initial hope for de-escalation, recent threats against Iranian infrastructure have dampened that optimism.”

European and Hong Kong markets were closed for a holiday, limiting broader global participation. However, Japan’s Nikkei closed with a gain of 0.55 per cent, indicating some regional resilience.

Commodity Market Updates

Oil prices experienced volatile trading as investors awaited clarity on U.S.-Iran negotiations, remaining concerned about potential supply disruptions. Brent crude futures dipped 0.5 per cent to US$108.50 a barrel, while West Texas Intermediate (WTI) crude futures fell 1.11 per cent to US$110.30 a barrel.

Gold, often considered a safe-haven asset, saw a slight increase, with spot gold rising 0.1 per cent to US$4,678.58 an ounce. U.S. gold futures for June delivery climbed 0.6 per cent to US$4,706 per ounce. You can find more information about gold prices and market trends at Kitco.

Canadian Dollar and Currency Movements

The Canadian dollar strengthened against the U.S. dollar, trading within a range of 71.68 to 71.90 US cents. However, the loonie has experienced a decline of approximately 2.33 per cent against the greenback over the past month.

The U.S. dollar index edged down 0.15 per cent to 99.88. The euro gained 0.28 per cent to US$1.1553, and the British pound rose 0.33 per cent to US$1.3246.

Bond Yields and Economic Data

The yield on the U.S. 10-year note increased to 4.339 per cent. Investors are closely monitoring upcoming economic data releases, including:

• 9:30 a.m. ET: Canada’s S&P Global Services PMI for March
• 10 a.m. ET: U.S. ISM Services PMI for March

These reports are expected to provide further insights into the health of the services sectors in both countries and potentially influence market sentiment.

Source: Reuters and The Canadian Press

Data updated as of 06/04/26 4:55pm EDT.