Canadian Stocks Soar As Trump Assures Of Ongoing U.S.-Iran Talks

(RTTNews) - Reversing the losses from yesterday's session, Canadian stocks on Tuesday surged to a new intra-day record high as investors welcomed U.S. President Donald Trump's assurances on ongoing uninterrupted negotiations between the U.S. and Iran.

After opening just a little lower than yesterday's close, today the benchmark S&P/TSX Composite Index gained momentum early in the session to trade firmly positive to reach a new intra-day record high of 35,176.77 before settling a little lower at 35,169.46, up by 434.57 points (or 1.25%).

Eight of the 11 sectors posted gains today, with the energy sector leading the pack.

After hectic discussions for more than a week, yesterday the U.S. and Iran were closing in to sign a Memorandum of Understanding.

Axios reported that the MoU would pave way for reopening of the Strait of Hormuz immediately and let both the U.S. and Iran to explore ways for resolving bilateral issues over a freshly extended 60-day ceasefire period.

On Friday, Trump announced that he would take a final call on the proposed MoU after discussing with his senior aides though no breakthrough announcement was made later.

Through Truth Social, Trump reassured that an agreement with Iran will be made soon which will be useful to the U.S.

On Sunday, Israel's Prime Minister Benjamin Netanyahu ordered Israeli forces to move deeper into Lebanon.

Yesterday, Israeli forces captured the strategic Beaufort's Castle in southern Lebanon.

Iran called Israeli attacks as a violation of a mutually agreed ceasefire brokered by the U.S.

Iran's Tasnim news agency reported that Iran paused exchange of communications with the U.S.

Yesterday, Trump announced that negotiations with Iran were continuing at a rapid pace.

After telephonic talks with Netanyahu and representatives of Lebanon's Hezbollah group, Trump stated that he had secured a ceasefire and affirmed that both sides have agreed to halt mutual attacks.

Once again, Trump reassured today that U.S.-Iran dialogue process has been going on for the past four days though he was uncertain on how it will end. Trump openly urged Iran to strike a deal.

Mohammad Bagher Ghalibaf, Iran's Parliamentary Speaker warned that if Israeli attacks on Lebanon continue, Iran will not only suspend the ongoing peace talks with the U.S. but will also stand against the Zionist regime.

Ghalibaf insisted on including U.S.-Lebanon ceasefire in the U.S.-Iran agreement.

Iran's Mehr News Agency reported that Iran is debating and reviewing the draft MoU and is yet to send a response.

Meanwhile, Canada formally requested a renewal of the Canada-United States-Mexico Agreement (or CUSMA), a North American free trade agreement.

The July deadline to renegotiate the pact is approaching soon.

If all three countries do not agree to extend by July 1, the pact has to be renewed every year until 2036.

Calling the agreement beneficial to all three countries, through the notice, Canada-U.S. Trade Minister Dominic LeBlanc requested that the deal be renewed for another 16 years.

On the economic front, it was an uneventful day for Canada today with no significant data releases.

Major sectors that gained in today's trading were Energy (2.39%), Financials (1.63%), Materials (1.58%), IT (0.74%), and Real Estate (0.61%).

Among the individual stocks, Kelt Exploration Ltd (4.44%), Cenovus Energy Inc (3.77%), Enerflex Ltd (3.42%), and Fairfax Financial Holdings Ltd (2.57%) were the prominent gainers.

Major sectors that lost in today's trading were Consumer Staples (0.27%), Communication Services (0.74%), and Healthcare (1.21%)

Among the individual stocks, Empire Company Limited (3.12%), Loblaw CO (1.08%), Rogers Communications Inc (2.78%), and Bausch Health Companies Inc (5.30%) were the notable losers.

Celestica Inc (10.98%), Energy Fuels Inc (10.89%), and Discovery Silver Corp (10.78%) were among the prime market-moving stocks today.