Canadian Equities Poised for Firm Opening as Commodity Markets Surge

Strength in Resource Prices Fuels Market Optimism

Commodity markets are displaying robust momentum heading into Wednesday’s trading session, with major raw materials showing across-the-board gains. West Texas Intermediate Crude has climbed $0.81 to settle at $61.96 per barrel—a 1.32% jump—while precious metals are leading the charge. Gold futures have surged $41.00 (0.9%) to $4,640.10 per ounce, and silver is outperforming with an impressive 6.3% gain, reaching $91.775 per ounce. Copper has also posted gains, rising $0.0235 (0.39%) to $6.0395 per pound. This firm price momentum in commodities is expected to carry over into North American equity markets.

Bay Street Expected to Open Strong on Commodity Tailwinds

Canadian stock investors are positioned for a constructive session Wednesday morning, with commodity strength providing a bullish backdrop. The benchmark S&P/TSX Composite Index enters the day on firmer ground, though traders remain attentive to several macro catalysts. U.S. producer price data and retail sales figures are on the economic calendar, while geopolitical tensions and tariff developments continue to influence trading decisions.

The previous session told a cautious story—after three consecutive days of gains, Canadian equities lost momentum on Tuesday as investors digested U.S. inflation readings. Geopolitical headwinds weighed on sentiment, prompting traders to adopt a more defensive posture. The S&P/TSX Composite closed marginally lower at 32,870.36, down just 4.34 points (0.01%) from record levels, as volatility remained elevated throughout the day.

Asian Markets Rally Amid Policy Hopes

Wednesday’s session saw Asian equities advance, boosted by expectations of potential Fed rate cuts and reports of a snap election in Japan. However, the overriding concern for global markets remains the Trump administration’s tariff stance. Traders are closely monitoring a possible U.S. Supreme Court ruling on emergency tariffs, with market participants assigning a 73% probability that the court will invalidate the measures. Treasury Secretary Scott Bessent has indicated the government possesses adequate resources for any required refund distributions, while Trump signaled via Truth Social that the full financial exposure may exceed existing tariff collections.

Europe Mixed as Tariff Uncertainty Lingers

European bourses are delivering mixed signals as investors balance geopolitical risks against tariff policy implications. The economic fallout from proposed new trade measures remains the focal point for positioning decisions across the region.

With commodity prices firm on the upside and attention fixed on regulatory developments, market participants are maintaining a balanced approach to risk while awaiting further clarity on the tariff front.