TSX Surges Over 300 Points as Hormuz Deal Hopes Rise
Canada's main stock index surged over 300 points on Wednesday as investors grew optimistic about a deal to reopen the Strait of Hormuz. The S&P/TSX composite index rose 344.83 points to 36,146.42.
This development comes after U.S. President Donald Trump said an agreement could be announced soon, following talks between Iran and Oman. Iranian and Omani negotiators have finalized a draft deal pending approval from Iran's supreme leader.
Brent Joyce, chief investment strategist at BMO Private Wealth, expressed hope that the pressure on both sides would lead to a breakthrough. He noted that the closure of the strait has blocked oil exports, driving up global fuel prices and inflation.
The Canadian dollar traded for 71.30 cents US, while the September crude oil contract was down 55 cents US at US$75.22 per barrel. Shopify Inc., which posted a US$1.5 billion profit in its latest quarter, saw its share price jump nearly 17%.