Weak Commodity Prices May Weigh On Canadian Market

(RTTNews) - Canadian stocks may open with a negative bias on Thursday, weighed down by sharply lower oil and precious metals prices. The signing of an interim peace deal by Iran and the U.S. may help limit market's downside.

According to reports, U.S. President Donald Trump and his Iranian counterpart Masoud Pezeshkian electronically signed the "Islamabad Memorandum of Understanding."

The MoU will enter into force with immediate effect and as a first step, Iran will instantly reopen the Strait of Hormuz and the United States will immediately lift the naval blockade of Iranian ports.

As per the 14-point framework deal, the U.S., Iranian teams will begin talks to reach a final deal over the next 60 days.

On the economic front, data on raw materials prices and industrial product price for the month of May are due at 8:30 AM ET.

Bay Street closed weak on Wednesday, snapping a four-day winning streak, as investors assessed the reopening of the Strait of Hormuz against forecasts of a delayed recovery in oil production in the gulf. Profit taking contributed as well to the market's weak close.

The benchmark S&P/TSX Composite Index ended with a loss of 264.47 points or 0.75% at 35,125.11.

Asian stocks ended mixed on Thursday, with Japanese and South Korean markets reaching fresh records on signs of easing geopolitical tensions and investor enthusiasm for artificial intelligence.

A cautious undertone prevailed elsewhere across the region after the U.S. Federal Reserve hinted at a possible interest rate hike this year.

European markets are somewhat subdued today despite Iran and the U.S. signing an interim 14-points peace plan.

In commodities, West Texas Intermediate Crude oil futures are down $1.28 or 1.65% at $75.51 a barrel.

Gold futures are down $119.00 or 2.7% at $4,262.40 an ounce, while Silver futures are down $3.857 or 5.44% at $66.910 an ounce.