Canada\u2019s main stock index and U.S. markets continued hovering around record highs on Wednesday as investors were hopeful that a deal to reopen the Strait of Hormuz could be getting closer.<\/p>\n
U.S. President Donald Trump said an agreement to reopen the critical waterway could be announced soon, as Iran and Oman inched toward a deal that could ease pressure on the global economy and potentially help bring an end to the war.<\/p>\n
The S&P\/TSX composite index was up 344.83 points at 36,146.42.<\/p>\n
In New York, the Dow Jones industrial average was up 263.24 points at 54,349.12. The S&P 500 index was down 12.97 points at 7,723.55, while the Nasdaq composite was down 221.55 points at 26,363.44.<\/p>\n
It\u2019s not the first time that hope surrounding a potential deal to end the war provided a jolt to the markets, but investors appeared optimistic this could be the moment many have been waiting for.<\/p>\n
Regional officials told The Associated Press that Iranian and Omani negotiators had finalized a draft deal to reopen the strait, pending approval from Iran\u2019s supreme leader.<\/p>\n
\u201cI don\u2019t know what number we\u2019re at, I stopped counting as to the possibility of a deal to get the Strait of Hormuz open, but certainly the latest leanings is that that is going to happen,\u201d said Brent Joyce, chief investment strategist at BMO Private Wealth.<\/p>\n
\u201cI\u2019ve been of the opinion that the pressure on both sides will eventually lead to some stasis that allows commodities to flow from the region. Perhaps this is the real one this time, and if it\u2019s not, we\u2019ll wash, rinse, repeat.\u201d<\/p>\n
The strait\u2019s closure has blocked oil exports while driving up global fuel prices and overall inflation. That has put pressure on the pocketbooks of American consumers with months to go before midterm elections, Joyce noted.<\/p>\n
\u201cIf that pressure comes with spot prices north of $100, that is the catalyst to push these combatants to the negotiating table,\u201d he said.<\/p>\n
North of the border, he called it a \u201cbanner day\u201d for the TSX amid strength in technology stocks, especially Shopify Inc.<\/p>\n
The company posted a US$1.5 billion profit in its latest quarter, it said Wednesday, pushing its share price up nearly 17%.<\/p>\n
\u201cThese have been market darlings for many years, and then earlier this year (there were) concerns about whether they were going to be disrupted by artificial intelligence,\u201d said Joyce.<\/p>\n
He said Shopify is proving its belief that artificial intelligence would complement its business rather than hinder it.<\/p>\n
\u201cMarkets and participants, I think, were reasonable to be a bit skeptical. What would you expect them to say? But now they\u2019re really showing that proof is in the pudding,\u201d he said.<\/p>\n
\u201cThe uptick in merchandise volumes for Shopify in particular (were) all very healthy and constructive, and on the spend side of things, reasonably contained.\u201d<\/p>\n
The Canadian dollar traded for 71.30 cents US, compared with 71.08 cents US on Tuesday.<\/p>\n
The September crude oil contract was down 55 cents US at US$75.22 per barrel, while the December gold contract was up US$152.60 at US$4,305.20 an ounce.<\/p>\n
\u2014With files from The Associated Press<\/p>\n","protected":false},"excerpt":{"rendered":"Canada\u2019s main stock index and U.S. markets continued hovering around record highs on Wednesday as investors were hopeful…\n","protected":false},"author":2,"featured_media":157535,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[2],"tags":[17,16254,3239,1632,386,1448,1631,3238,3241,3237,3240,20758],"class_list":["post-157534","post","type-post","status-publish","format-standard","has-post-thumbnail","category-canada","tag-canada","tag-dollar","tag-dow-jones-industrial-average","tag-gold","tag-markets","tag-nasdaq","tag-oil","tag-sp-500","tag-sp-tsx-composite-index","tag-stocks","tag-u-s-dollar","tag-u-s-iran-war"],"_links":{"self":[{"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/posts\/157534","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/comments?post=157534"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/posts\/157534\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/media\/157535"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/media?parent=157534"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/categories?post=157534"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/canada\/wp-json\/wp\/v2\/tags?post=157534"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}