Bay Street Likely To Open Notably Lower

(RTTNews) - The Canadian market is seen opening on a negative note on Wednesday amid escalating U.S.-Iran tensions and fears of inflation and monetary tightening by central banks.

Middle east tensions have escalated amid reports of U.S. airstrikes on Iranian targets and the decision to revoke a sanctions waiver that had allowed Iran to sell oil globally.

U.S. President Donald Trump declared at the NATO Summit that the Iran ceasefire "is over," raising fears of a larger conflict with Iran and Strait of Hormuz disruptions.

Investors will be looking forward to the minutes from the Federal Reserve's most recent policy meeting, for clues about the central bank's future policy moves.

Canadian stocks closed marginally higher on Tuesday amid a jump in the oil-linked energy sector due to renewed Middle East tensions. Persisting concerns over the U.S. refusal to renew Canada-United States-Mexico Agreement for free trade held back investors from making big moves.

The benchmark S&P/TSX Composite Index ended with a gain of 60.27 points or 0.17% at 35,272.59.

Asian stocks ended mostly lower on Wednesday, with tech shares coming under selling pressure amid concerns that the AI-fueled rally in chipmakers may be losing momentum.

Renewed U.S.-Iran tensions also weighed on sentiment after the U.S. carried out a fresh round of airstrikes on Iran, targeting more than 80 locations in response to Iranian attacks on three commercial vessels in the Strait of Hormuz.

European stocks are down sharply today as renewed tensions in the Middle East and the resultant surge in oil prices and bond yields rendered the mood bearish. Political uncertainty in France added to the woes.

In commodities, West Texas Intermediate crude oil futures are up $3.86 or 5.48 percent at 74.30 a barrel. The contract rose to $75.30 a barrel earlier this morning.

Gold futures are down $84.90 or 2.04 percent at $4,072.50 an ounce, while Silver futures are down $2.405 or 3.9% at $58.925 an ounce.