EBC Markets Briefing | Loonie down on lower oil prices; Qualcomm up sharply

The Canadian dollar slipped and crude prices fell more than 4% at the start of Asian trading on Monday after Trump indicated that talks with Iran to reopen the Strait of Hormuz are advancing.

Alberta Premier Danielle Smith has announced plans for the province to hold a non-binding vote in autumn on whether its residents wish to remain Canadians or move ahead with a second binding vote on separation.

Opinion polls indicate that separatism in Alberta lacks broad appeal, however. A separate petition calling for the province to stay in Canada says it has gathered more than 404,000 signatures.

Alberta has the fourth-largest oil reserves in the world, which underpins its position as a major revenue source amid global supply shortage. A peace deal in the Middle East would likely be shaky if at all.

Canada's economy is expected to return to growth in Q1 with GDP bouncing back by an annualized 1.7%, supported by improving domestic growth drivers, according to the RBC.

The country's era of easy came to an end after Trump applied sweeping tariffs, but the move exposed a massive preparedness gap among Canadian businesses, according to a new report by Deloitte.

The Canadian dollar traded above 200 SMA, but there is yet to be any meaningfully bullish sign. As such the path of least resistance is a push below 1.3840 per dollar, the low hit in April.

Asset recap

As of market close on 22 May, among EBC major products, Qualcomm shares led gains as the chipmaker's increasingly central position in the physical AI boom becomes more apparent to Wall Street.

Uber is interested in a full takeover of food delivery service Delivery Hero for further expansion in Europe. However, investors frowned at the news and chose to sell their stakes in the company.

US natural gas prices fell, but it could be short-lived. US LNG has become the backbone of global gas supply since closure of the Strait of Hormuz rattled the energy markets.

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