Canadian shares may open with a negative bias this Wednesday due to rising tensions in the Middle East. However, higher oil prices could incite buying in the energy sector, mitigating the market's downside.
With no significant economic data releases from the U.S. or Canada today, investors are expected to avoid making any substantial movements.
The Canadian market closed slightly higher on Tuesday, primarily driven by robust gains in the energy sector as oil prices surged following increased tensions in the Middle East after Iran launched a missile attack on Israel.
The benchmark S&P/TSX Composite Index, which fell to 23,875.68 after a mildly weak start, eventually finished the session with a gain of 33.62 points or 0.14%, closing at 24,033.99.
Asian markets mostly ended lower on Wednesday, despite a continuous surge in Hong Kong shares driven by stimulus optimism. Investor sentiment was cautious in light of Tehran's brief but sharp retaliatory strike in response to Israel's recent attacks on Lebanon.
European stocks are presenting a mixed performance. Energy stocks are leading the rise as oil prices continue their overnight rally amid concerns that escalating Middle East tensions could potentially disrupt crude oil output from the region.
In other economic news, the Eurozone's unemployment rate remained steady at 6.4% in August, aligning with market expectations.
In commodities, West Texas Intermediate Crude oil futures have surged $2.20, or approximately 3.15%, reaching $72.03 per barrel. Gold futures have declined by $18.10, or 0.67%, to $2,672.20 an ounce, while Silver futures are slightly down by $0.017, or 0.05%, at $31.725 an ounce.
