Bay Street Likely To Open On Mixed Note

(RTTNews) - Canadian stocks are likely to open on a mixed note on Friday with investors reacting to Middle East news and digesting the most recent economic data and earnings news.

According to media reports, the U.S. and Iran have reached a temporary agreement to extend their ceasefire by 60 days, resume unrestricted shipments through the Strait of Hormuz and begin negotiations over Tehran's nuclear program.

U.S. President Donald Trump's approval is awaited. If the deal comes through, Iran would not be able to impose tolls on ships transiting the Strait of Hormuz, while the U.S. would gradually lift its sea blockade on Iranian ports.

Data from Statistics Canada showed Canada's GDP decreased at an annualized 0.1% rate in the first three months of 2026, extending the 1% drop in the previous period, and entering into a technical recession. GDP was expected to expand 1.5% in the first quarter.

The Canadian economy likely expanded 0.4% month-over-month in April 2026, the most since January 2025, recovering from a 0.1% drop in March, according to preliminary estimates.

In earnings news, Laurentian Bank of Canada reported a net loss of $20.6 million and a diluted loss per share of $0.50 for the second quarter of 2026, compared with net income of $32.3 million and diluted earnings per share of $0.69 for the second quarter of 2025.

Canadian stocks closed higher on Thursday, recovering fairly well from early weakness. The benchmark S&P/TSX Composite Index climbed well off its worst levels of the day and into positive territory, closing up 105.65 points or 0.3% at 34,517.70.

Asian stocks rose broadly on Friday, with optimism around the resonant AI trade, strong earnings from Dell Technologies, and reports of a proposed 60-day ceasefire extension between the U.S. and Iran.

The major European markets are up in positive territory amid hopes for a U.S.-Iran peace deal following the two nations agreeing in principle to extend their ceasefire by sixty days.

In commodities trading, West Texas Intermediate Crude oil futures are down $1.16 or 1.29% at $87.74 a barrel.

Gold futures are up $14.00 or 0.31% at $4,546.40 an ounce, while Silver futures are down $0.317 or 0.41% at $75.595 an ounce.