Futures tracking the S&P/TSX Composite Index edged lower on Wednesday, pressured by expectations of prolonged restrictive monetary policy and elevated energy prices. The breakdown of US–Iran peace talks this week dampened hopes for a reopening of the Strait of Hormuz, further weighing on sentiment. At the same time, mounting worries about broader stagflationary forces and rising bond yields continued to drag on bank stocks and the wider equity market.
Gold prices extended their decline after stronger-than-expected US producer price data bolstered expectations of a tighter Federal Reserve stance, adding pressure to mining shares.
In corporate news, Equinox Gold announced plans to acquire Orla Mining in a transaction that would create a North America-focused gold producer with an implied market value of approximately $18.5 billion. Separately, Boyd Group reported a 28% increase in first-quarter sales, although the results came in slightly below analyst expectations.
